Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Eurozone debt rises sharply
July 22, 2014 , 9 : 45 pm GST
SAVE THIS ARTICLE
In the full 28-member EU, total debt rose to 88% from 87.2%, the Eurostat statistics agency said. Photo: Bloomberg file picture
Eurozean public debt — the accumulated total of government budget deficits and borrowing — rose sharply earlier this year, reversing a downtrend when the economic crisis eased, official figures showed on Tuesday.
The 28 European Union states are supposed to keep total public debt below the equivalent of 60 per cent of annual economic output, while annual budget deficits must not exceed 3.0 per cent.
For years however these limits have been breached and total debt increased sharply during the crisis as governments borrowed even more to bolster their economies.
Total debt rises
The result is that total debt in the 18 eurozone countries rose to 93.9 per cent of gross domestic product in the first three months of 2014, up from 92.7 per cent in the fourth quarter 2013. In the full 28-member EU, total debt rose to 88 per cent from 87.2 per cent, the Eurostat statistics agency said.
Eurostat gave no explanation for why the figures increased in the first quarter.
Debt had fallen in both the third and fourth quarters of last year as the economy recovered slowly from a deep recession, boosting government revenues as spending was kept under control.
On that basis, some countries such as twice-bailed out Greece and struggling France, have called for an easing in the austerity policies adopted to tame the crisis, but yesterday's figures may give pause for thought in doing so.
Among those with the highest total debt levels were Greece on 174.1 per cent of annual output, Italy 135.6 per cent and Portugal 132.9 per cent, levels which many analysts believe make full repayment an unlikely prospect.
Rate this Article
Rates : 0, Average : 0
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter Image Text:
No Comments Posted
Latest in this section
Opec to name Nigeria’s Alison-Madueke as president for 2015
Venezuela backs Opec cut as oil glut builds; prices fall
Tenders floated to develop Duqm port infrastructure
HSBC to refund customers for excessive fees in Oman, four other Middle East countries
Merkel backs multi-billion-euro plan to revive economy
TOP RATED ARTICLES
Quizaholics Anonymous win Times of Oman Open Quiz Contest
Royal Opera House Muscat celebrates Oman's 44th National Day
Times News Service
New GCC contracts ‘blessing’ for maids
HSBC to refund customers in Oman, four other Middle East countries for excessive fees
Iconic Lebanese singer and actress Sabah dies at 87
More in News
Sri Lanka restores blood-soaked railway to Tamil heartland
Bucharest 'khans' reborn after decades of neglect
More than just a moustache - Adolf Hitler vs Charlie Chaplin
Urban gardens greening Berlin rooftops, airfield
Tips for writing a good article
More in Features
China’s new economic and geopolitical clout
Disunity and leadership vacuum in Islamic world
Politics behind the election of UN Secretary-General
Nuclear conflict remains an overbearing threat
Empowering people for inclusive growth
More in Columns
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial