Wednesday, 22 July 2015

Q1 2015 Debt to GDP Ratio for Eurozone Rises to 92.9%

Eurostat reports,
At the end of the first quarter of 2015, the government debt to GDP ratio in the euro area (EA19) stood at 92.9%, compared with 92.0% at the end of the fourth quarter of 2014. In the EU283, the ratio increased from 86.9% to 88.2%. Compared with the first quarter of 2014, the government debt to GDP ratio rose in both the euro area (from 91.9% to 92.9%) and the EU28 (from 86.2% to 88.2%).
At the end of the first quarter of 2015, debt securities accounted for 79.1% of euro area and for 80.8% of EU28 general government debt. Loans made up 18.0% and 15.2% respectively and currency and deposits represented 2.9% of euro area and 3.9% of EU28 government debt.

How to solve a debt crisis? Add more debt of course. At least that's the thinking of the central planners in Brussels and country politicians as government debt in the eurozone rose by a staggering €253.954 billion (2.77%) from Q1 2014 to Q1 2015. From bad to worse then. Unfortunately, it will become much, much worse as long as eurozone bureaucrats and governments continue their big spending, central planning and anti free market policies. 

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