Eurozone: Sovereign debt decreases for the first time since 2007

Eurostat graph. General government gross debt at the end of June 2013 (% of GDP).  BE Belgium, BG Bulgaria, CZ Czech Republic, DK Denmark, DE Germany, EE Estonia, IE Ireland, EL Greece, ES Spain, FR France, HR Croatia, IT Italy, CY Cyprus, LV Latvia, LT Lithuania, LU Luxembourg, HU Hungary, MT Malta, NL Netherlands, AT Austria, PL Poland, PT Portugal, RO Romania, SI Slovenia, SK Slovakia, FI Finland, SE Sweden, UK United Kingdom

Eurostat graph. General government gross debt at the end of September 2013 (% of GDP).
BE Belgium, BG Bulgaria, CZ Czech Republic, DK Denmark, DE Germany, EE Estonia, IE Ireland, EL Greece, ES Spain, FR France, HR Croatia, IT Italy, CY Cyprus, LV Latvia, LT Lithuania, LU Luxembourg, HU Hungary, MT Malta, NL Netherlands, AT Austria, PL Poland, PT Portugal, RO Romania, SI Slovenia, SK Slovakia, FI Finland, SE Sweden, UK United Kingdom

During the third quarter of 2013 euro area government debt decreased in absolute terms for the first time since the end of 2007. According to Eurostat, the EU statistical service, at the of the third quarter of 2013, the government debt to GDP ratio in the euro area also decreased to 92.7%, compared with 93.4% at the end of the second quarter of the same year. The same source reveals that in absolute terms Eurozone sovereign debt stood at €8,841,823 million on 30 September 2013 in comparison to €8,875,107mn at the end of June 2013. The bulk of the state debt is in government bonds and bills (€7,015,230mn on 30/9/2013).

Who borrows most?

As expected the more indebted Eurozone countries are the ones hardest hit by the crisis. The highest ratios of government debt to GDP at the end of the third quarter of 2013 were recorded in Greece (171.8%), Italy (132.9%), Portugal (128.7%) and Ireland (124.8%), and the lowest in Estonia (10.0%), Bulgaria (17.3%) and Luxembourg (27.7%). Eurostat notes that “Compared with the second quarter of 2013, ten Member States registered an increase in their debt to GDP ratio at the end of the third quarter of 2013, seventeen a decrease and Slovenia no change. The highest increases in the ratio were recorded in Cyprus (+11.0 percentage points – pp), Luxembourg (+4.6 pp) and Greece (+3.0 pp). The largest decreases were recorded in Portugal (-2.6 pp), Finland (-2.5 pp), Belgium (-1.5 pp), Germany (-1.4 pp) and Hungary (-1.3 pp)”.

The large increase in Cyprus’ sovereign debt last summer was due to a large loan from the European Stability Mechanism. At that time the Eurogroup, comprising the ministers of Finance of euro area countries, agreed to accord to Nicosia a loan of around €10 billion in order to resolve or rescue the two largest banks of the country, which failed at that time. It was loans disbursed under the financial assistance package for Cyprus from the EFSF. It must be noted that the state-island’s fiscal accounts were in good shape but its oversized banks which went bankrupt threatened to drag the entire country to the abyss.

Yearly base

On a yearly base the crisis hit countries recorded a sizeable increase of their sovereign debt. Eurostat states that, “Compared with the third quarter of 2012, twenty-three Member States registered an increase in their debt to GDP ratio at the end of the third quarter of 2013, and five a decrease. The highest increases in the ratio were recorded in Cyprus (+25.3 pp), Greece (+19.9 pp), Spain (+14.3 pp) and Slovenia (+14.1 pp), while decreases were recorded in Germany (-2.8 pp), Latvia (-2.0 pp), Bulgaria (-1.4 pp), Denmark (-0.9 pp) and Lithuania (-0.8 pp)”.

After the first rescue of Greece in spring of 2010 and the subsequent bailouts of Portugal, Ireland and Cyprus and the recapitalisation of the Spanish banks, all sovereign lending to those countries was official. It comprised intergovernmental credit and loans made by the European Financial Stability Facility.

 

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Croatian Presidency outlines priorities to EP committees

‘We all must step up’ collective action on disability inclusion – UN deputy chief

Easier Schengen Visas for non-EU holiday makers: A crucial issue for south Eurozone countries

How data can empower patients to personalize and improve their cancer treatment

What Ghana can teach us about integrating refugees

It’s time to build a responsible media supply chain

Coronavirus: EU Civil Protection Mechanism activated for the repatriation of EU citizens

Lack of investment and ambition means Youth Guarantee not reaching potential

Why leaders need to upgrade their operating systems

What does a good digital ID look like?

EP President at the European Youth Event: “Your ideas are key in shaping EU’s future”

Central Asia: the European Union matches political commitment with further concrete support

Berlin wants to break South’s politico-economic standing

2021-2027 EU Budget: €378,1 billion to benefit all regions

7 surprising and outrageous stats about gender inequality

European Commission pledges additional €30 million in immediate support for Lebanon

Over 40 million people still victims of slavery

UN chief condemns deadly Burkina Faso mosque attack

An Easter Special: Social protection of migrants in Europe as seen through the eyes of European youth

EU budget: Commission helps prepare new Cohesion programmes with Regional Competitiveness Index and Eurobarometer

Tokyo Olympics postponed to 2021 over coronavirus concerns

European Union: More taxes out of less income

Draghi: A bridge from Brussels to Berlin

A question of trust: the UN political chief working behind the scenes to prevent tomorrow’s wars

Gig workers among the hardest hit by coronavirus pandemic

A Brussels antithesis reveals where the EU is heading

Asylum seekers in Sri Lanka fear for their safety, in wake of Easter Sunday terror attacks

UN health agency welcomes Facebook pledge to stop vaccine misinformation from going viral

EU Parliament: Follow the fraudulent money and confiscate it

Japan’s population is shrinking by a quarter of a million people every year

European Business Summit 2013: Where Business and Politics shape the future

What Mary Poppins teaches us about behavioural economics

European Commission issues first emission of EU SURE social bonds

Margrethe Vestager, EU Commissioner in charge of competition policy, during a recent press conference in Brussels / Berlaymont. (Copyright: EU, 2018 / Source: EC - Audiovisual Service / Photo: Jennifer Jacquemart)

EU opens investigation into Qatar Petroleum over potentially restrictive gas contracts

E-energy declaration: will energy digitalization be beneficial to the climate?

Rule of Law in Poland: concerns continue to grow among MEPs

Japan to invest in euro values

UN chief praises Japanese climate resilience, as Typhoon Hagibis cleanup begins

Can the EU afford to block China’s business openings to Europe by denying her the ‘market economy status’?

UN Human Rights Council stands firm on LGBTI violence, Syria detainees and Philippines ‘war on drugs’

A giant marine heatwave has descended on Alaska

“Fortress Europe”, “Pegida” and its laughing stocks

45th Anniversary of the French Confederation (Confédération Nationale des Junior Entreprises)

Mobility in 2020: a female perspective

A European student just sets the question of the day: What kind of education policies are missing in Europe?

‘Bleakest period yet’ in Occupied Palestinian Territory: UN human rights expert

CEOs as activists: should leaders speak up about social causes?

This new initiative aims to make cybercrime harder – and riskier – to commit

Alexis Tsipras ready to test Eurozone’s political sturdiness; Up to what point?

‘Water-forecasting’ and fish farms fed on waste: how innovation is driving the blue economy

A reflection of health inequity in recent epidemics

Yemen: 11 more ‘terrible, senseless’ civilian deaths reported, following attack in Sana’a – top UN official

Coronavirus has exposed human rights gaps. We need to fix this

Peacekeeping chief highlights challenges facing UN Police

Aung San Suu Kyi suspended from the Sakharov Prize Community

EU-China trade: closer ties as US-China trade battle brews

Governments can fight corruption by joining the digital payment revolution

PM May fosters chauvinism, declares trade war on Europe

Why rich countries are seeing more poverty

This new form of currency could transform the way we see money

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s