In economic models, government’s behavior is often analyzed under an opportunistic perspective; indeed, some countries or geographic regions are viewed as “serial defaulters”. “Debt-intolerant” countries have weak fiscal structures and fragile financial systems. Thus, as a policy prescription, as the enhancement of institutions is a long term process, the safe thresholds of public debt should be set at a much lower level than in developed countries, perhaps 20 or 30 per cent of GDP.