A Cluster Analysis of Public Debt Management Efficiency and Fiscal Modernisation in the European Union

Article DOI: https://doi.org/10.57017/jaes.v21.2(92).09

Author(s):

Larysa SIDELNYKOVA Department of Finance, Accounting and Taxation, Kherson National Technical University, Ukraine
Galyna KUCHER Department of Finance, State University of Trade and Economics, Ukraine
Lidiia VDOVICHENA Department of Public Law, Faculty of Law, Yuriy Fedkovych Chernivtsi National University, Ukraine
Ara A. MKRTCHYAN Armenian State University of Economics, Armenia
Artem FREIUK Interregional Academy of Personnel Management, Ukraine

Abstract:

This study evaluates the efficiency of public debt management across European Union (EU) member states within the broader framework of public finance modernisation. As the Eurozone navigates post-pandemic recovery and shifting monetary policies, the ability of states to optimise debt structures has become a critical determinant of macroeconomic stability. Utilizing a multidimensional cluster analysis, the research categorizes EU countries based on debt-to-GDP ratios, servicing costs, and institutional fiscal strength.
The findings identify three distinct archetypes: "Fiscal Anchors" with high management efficiency, "Modernising Transnationals" with moderate leverage, and "Vulnerable Peripheral" economies facing structural debt pressures. The research demonstrates that modernizing public finance institutions is positively correlated with lower debt-servicing burdens and enhanced market credibility. The study concludes with policy recommendations for harmonising debt management strategies across the EU to ensure long-term fiscal sustainability and economic resilience.

Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s History: Received 15th of December, 2025; Revised 19th of January, 2026; Accepted 1st of March, 2026; Available online: 30th of March, 2026. Published as article in the Volume XXI, Spring, Issue 2(92), March, 2026.

How to cite:

Sidelnykova, L., Kucher, G., Vdovichena, L., Mkrtchyan, A. A., & Freiuk, A. (2026). A Cluster Analysis of Public Debt Management Efficiency and Fiscal Modernisation in the European Union. Journal of Applied Economic Sciences, Volume XXI, Spring, 2(92), 545 – 563. https://doi.org/10.57017/jaes.v21.2(92).09

Acknowledgments: The authors did not receive any funding during conducting the research.

Conflict of Interest Statement: The authors declare that there is no conflict of interests.

Data Availability Statement: The data supporting the findings of this study are derived from publicly available sources, including European Commission, Eurostat, and IMF reports, as well as secondary analytical datasets compiled by the authors. Additional details regarding data processing and methodology are available from the corresponding author upon reasonable request.

Ethical Approval Statement: This study does not involve human participants, individual-level personal data, or experimental procedures requiring approval from an institutional ethics committee. The research is based exclusively on secondary data derived from publicly available institutional and analytical sources related to public debt management strategies in European Union countries. All data used in the analysis are aggregated and do not contain any confidential or personally identifiable information. Therefore, in accordance with internationally accepted research ethics standards, formal ethical approval was not required for this study.

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