Eurozone crisis: Public debt jumps to 209% of GDP — euro on the verge of collapse
EUROZONE debt has surpassed Gross Domestic Product (GDP) for the first time, with Greece’s debt-to-GDP ratio reaching a staggering 209%.
The financial impact of the coronavirus outbreak continues to shake the monetary union of 19 European countries.
According to Eurostat, the European Union’s statistical office, the government debt to GDP ratio in the eurozone now stands at 100.5 percent in the first financial quarter of 2021.
According to the alarming assessment, state debt now exceeds the market worth of goods and services.
The debt-to-GDP ratio during the first three months of 2021, from April to June, increased by over 3% over the previous quarter.
The eurozone’s ratio was 97.8 percent at the end of the previous fiscal year.
Meanwhile, the eurozone debt number was 86.1 percent in the first quarter of 2020-21, up 14.4 percent from a year ago.
The pandemic’s financial toll is felt throughout the European Union.
The debt-to-GDP ratio in the EU27 has risen from 90.5 percent at the end of the previous fiscal year to 92.9 percent in the first three months of 2021, according to data.
When the pandemic initially broke out in the first quarter of 2020, the EU-wide percentage was only 79.2 percent.
Greece has the highest economic load, with a national debt of 209.3 percent of GDP.
Meanwhile, the government debt ratio in Italy is 160 percent, 137.2 percent in Portugal, and 125.7 percent in Cyprus.
With a first-quarter debt-to-economic-output ratio of 118 percent, France’s debt surpasses its economic production.
Germany, the EU’s largest economy, has a debt-to-GDP ratio of 71.2 percent, which is comparatively low.
The European Central Bank (ECB) released a financial update earlier today, giving member nations a much-needed boost.
In order to boost sluggish inflation across the eurozone, the ECB met expectations by vowing to hold interest rates at record lows for even longer.
The bank stated that it will not raise borrowing prices until inflation reaches the two percent target.
Long periods of low inflation, the ECB added, would necessitate “especially robust or persistent” policy support, implying that stimulus could be maintained in place for longer than many had expected.
Christine Lagarde, President of the European Central Bank, issued a joint statement. “Brinkwire News in Condensed Form.”