HUFFINGTON POST: … Eurostat, the EU’s statistics office, said government debt as a proportion of the total annual gross domestic product of the eurozone rose to a record 92.2 percent in the first quarter of 2013, from 90.6 percent the previous quarter and 88.2 percent in the same period a year ago…
Some progress has been made – many countries’ annual budget deficits are falling. Greece, for example, is expected to start posting economic growth next year while recording a primary surplus – the annual budget excluding debt-related payments – after years of savage austerity that’s contributed to a near six-year recession and unemployment of around 27 percent.
One side-effect of the austerity measures has been to keep a lid on economic growth – government spending is a key component of the economy while tax rises can choke consumption and investment. Many euro countries are actually in recession – shrinking economies can make the debt-to-GDP ratio look less favorable. Coupled with the fact that countries continue to add to their debt mountains by ongoing, albeit smaller, budget deficits, the overall debt burden of the eurozone has continued to rise… (more)
