Wednesday, 24 October 2012

Euro area government debt up to 90.0% of GDP

Eurostats reports,
Second quarter of 2012 compared with first quarter of 2012
Euro area government debt up to 90.0% of GDP
EU27 debt up to 84.9%
At the end of the second quarter of 2012, the government debtto GDP ratio in the euro area (EA17) stood at 90.0%, compared with 88.2% at the end of the first quarter of 2012. In the EU27 the ratio increased from 83.5% to 84.9%. Compared with the second quarter of 2011, the government debt to GDP ratio rose in both the euro area (from 87.1% to 90.0%) and the EU27 (from 81.4% to 84.9%). These data are released by Eurostat, the statisticaloffice of the European Union.
At the end of the second quarter of 2012, securities other than shares accounted for 78.6% of euro area and for 80.1% of EU27 general government debt. Loans made up 18.6% of euro area and 16.1% of EU27 government debt. Currency and deposits represented 2.8% of euro area and 3.7% of EU27 government debt.
The highest ratios of government debt to GDP at the end of the second quarter of 2012 were recorded in Greece (150.3%), Italy (126.1%), Portugal (117.5%) and Ireland (111.5%), and the lowest in Estonia (7.3%), Bulgaria (16.5%) and Luxembourg (20.9%).
Compared with the first quarter of 2012, twenty Member States registered an increase in their debt to GDP ratio at the end of the second quarter of 2012, six a decrease and one remained stable. The highest increases in the ratio were recorded in Greece (+13.4 percentage points - pp), Cyprus (+8.3 pp) and Portugal (+5.6 pp), and the largest decreases in Lithuania (-2.3 pp), Latvia and Hungary (both -1.3 pp).
Interesting to note that both the highest debt/GDP ratios and highest increases in the ratios are found in the euro area, while EU members that are not part of the euro area are faring much better. What more evidence do the EU bureaucrats and technocrats, and more importantly, the electorate, need that the project has failed and that it is not worth saving by making euro area citizens suffer financially. Socialising losses and increasing bureaucracy (and hence admin costs) do not work. This is basic economics 101.
Read the full press release here.




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