Brussels, 23/07/2013 (Agence Europe) - Average public debt as a proportion of GDP reached a new high in the eurozone and EU28 at the start of the year, according to figures released by the European Union's statistical office, Eurostat, on Monday 22 July.
From the fourth quarter of 2012 to the first quarter of 2013, the debt-GDP ratio rose from 90.6% to 92.2% in the eurozone and from 85.3% to 85.9% in the EU28.
In the eurozone, only Germany and Estonia saw a slight drop in debt. Belgian public debt rose sharply to over 100% of GDP (104.5% in Q1/13 from 99.8% in Q4/12). Belgian finance minister Koen Geens said this happens at the start of every year and financing needs fall later in the year when a number of bodies repay their loans to the state.
Despite the structural adjustment programme, Greece's debt rose from 156.9% in Q4/12 to 160.5% of GDP in Q1/13. Unconcerned, a European source pointed out that Greece's public debt trajectory was on track with the targets laid down in the structural adjustment programme and it is not until next year that the debt is expected to decline. Italy's debt now stands at more than 130% of GDP. The country announced at the weekend that it is prepared to take special measures to rein it in. French business newspaper Les Echos says this may take the form of making the most of public heritage or selling off public stakes.
Compared with the first quarter of 2012, the biggest increases in the debt-GDP ratio were in Greece, Ireland, Portugal and Cyprus, all four of which have requested a financial bailout.
Outside the eurozone, debt rose during the same period in six member states: the Czech Republic, Lithuania, Poland, Hungary, Romania and Sweden. (EL/transl.fl)