News
BackThis week, Eurostat published the first deficit and debt data of the public sector in the EU27 for 2010. The severe financial and economic crisis is a major factor why the Member States are so far removed from the debt limit of 60 percent determined in the Maastricht criteria: if the average debt of the Member States prior to the start of the severe financial and economic crisis in 2007 was at about 59 percent, in 2010 it had already risen to 80 percent. The debt level in the euro area is even over 85 percent. However, one cannot just blame the rating agencies and media of particularly criticised countries such as Greece, Spain and Portugal. A number of countries with excellent credit rating also have a level of debt of more than 80 percent.
After Greece, who has a debt of 142.8 percent, Italy at 119 percent has the second highest level of debt in the European Union. Belgium, with 96.8 percent ranks in third place. By the way, the debt levels of Germany (83.2 percent), France (81.7 percent), the United Kingdom (80 percent) and some other countries are significantly above the debt burden of Spain (60.1 Percent), who had come under criticism during the past months.
Alarmingly high are the budget deficits of individual Member States. At 32.4 percent, Ireland’s deficit is almost 11 times as high as provided for by the Maastricht criteria (3 percent). However, also problematic are the deficits of Greece (10.5 percent), Great Britain (10.4 percent), Spain (9.2 percent) and Portugal (9.1 percent).
Debt ratio in Euro area near 85 percent
At the end of 2010, the level of debt of the 17 Member States of the euro area was at about € 7,837 billion resp. 85.1 percent of the Gross Domestic Product. With Estonia, Luxembourg, Slovenia and Finland, only four countries have a debt ratio below the 60 percent Maastricht limit. In 2010, the average deficit was at 6.0 percent.
The total level of debt of all 27 EU countries is at € 9,828 billion, which is equivalent to 80 percent of the EU GDP. In 2010, the average was at 6.4 percent.
Great Britain doubled and Ireland quadrupled their debt within four years; Sweden is the new showcase country
Ireland, the former shining example of the EU quadrupled her debt within four years: if in 2007 the level of debt was only at 25 percent, it had risen to 96.2 percent by 2010. So far, the difficult situation of Great Britain has hardly been discussed. Her level of debt has almost doubled in four years and after 44.5 percent in 2007 it had increased to 80 percent by 2010. Both in the case of Ireland and Great Britain, the current problems have in above all been caused by the financial sector.
In contrast, Sweden overcame the economic crisis rather quickly and presented a balanced budget in 2010. Between 2007 and 2010 her level of debt even decreased from 40.2 to 39.8 percent.
What about Austria?
Austria’s deficits and debt has been revised upwards for the period between 2007 and 2009; the debt of the railway company ÖBB, public hospitals and accounts payable relating to cash collaterals on financial derivatives have been included. In 2010, the level of debt rose from 60.7 percent in 2007 to 72.3 percent in 2010. Last year, government deficit stood at 4.6 percent.
Further information:
Eurostat news release on the government deficit and the government debt in the Euro area and the EU27
Alarmingly high are the budget deficits of individual Member States. At 32.4 percent, Ireland’s deficit is almost 11 times as high as provided for by the Maastricht criteria (3 percent). However, also problematic are the deficits of Greece (10.5 percent), Great Britain (10.4 percent), Spain (9.2 percent) and Portugal (9.1 percent).
Debt ratio in Euro area near 85 percent
At the end of 2010, the level of debt of the 17 Member States of the euro area was at about € 7,837 billion resp. 85.1 percent of the Gross Domestic Product. With Estonia, Luxembourg, Slovenia and Finland, only four countries have a debt ratio below the 60 percent Maastricht limit. In 2010, the average deficit was at 6.0 percent.
The total level of debt of all 27 EU countries is at € 9,828 billion, which is equivalent to 80 percent of the EU GDP. In 2010, the average was at 6.4 percent.
Great Britain doubled and Ireland quadrupled their debt within four years; Sweden is the new showcase country
Ireland, the former shining example of the EU quadrupled her debt within four years: if in 2007 the level of debt was only at 25 percent, it had risen to 96.2 percent by 2010. So far, the difficult situation of Great Britain has hardly been discussed. Her level of debt has almost doubled in four years and after 44.5 percent in 2007 it had increased to 80 percent by 2010. Both in the case of Ireland and Great Britain, the current problems have in above all been caused by the financial sector.
In contrast, Sweden overcame the economic crisis rather quickly and presented a balanced budget in 2010. Between 2007 and 2010 her level of debt even decreased from 40.2 to 39.8 percent.
What about Austria?
Austria’s deficits and debt has been revised upwards for the period between 2007 and 2009; the debt of the railway company ÖBB, public hospitals and accounts payable relating to cash collaterals on financial derivatives have been included. In 2010, the level of debt rose from 60.7 percent in 2007 to 72.3 percent in 2010. Last year, government deficit stood at 4.6 percent.
Further information:
Eurostat news release on the government deficit and the government debt in the Euro area and the EU27