The experience of high debt levels and budget deficits has caused many countries to embark on reforms to their public debt management, some of which are still in under way. These reforms are given particular attention in member states of the Economic and Monetary Union. The common monetary and currency policy and a common market, combined with the necessity to meet the established fiscal criteria, presents these countries with a new and greater challenge. This is especially true of those countries whose debt levels are markedly higher than the Union average.

In her paper, the author highlights two elements which determine the pattern of the entire government debt management policy. These are: its objectives on the one hand and its degree of independence - as determined by a given country - on the other.

According to the author's observations, objectives for debt management policy tend to be formulated in a transparent and credible manner, with costs and risk of debt servicing carefully balanced, and due attention given to the desired position the country wishes to attain in the market. The paper underlines the growing importance of maintaining the independence of debt management policy (particularly in terms of operations and institutions) and protecting it from direct top-down pressures from the monetary and fiscal authorities. Such pressures have recently become increasingly common. For this as well as other reasons, the issues addressed by the paper are universally relevant to macroeconomic policy.