Debts and deficits, peaks in Europe in 2020, Italy over 155% of GDP. But in the second quarter of 2021 the indicators improve

Debts and deficits, peaks in Europe in 2020, Italy over 155% of GDP. But in the second quarter of 2021 the indicators improve
Debts and deficits, peaks in Europe in 2020, Italy over 155% of GDP. But in the second quarter of 2021 the indicators improve

The relationship between deficit and GDP in the 19 countries of the euro zone down from 7.1% in the first quarter of the year to 6.9% at the end of the period from April to June: he made it known Eurostat based on estimates adjusted for seasonal factors. Overall, the EU has gone from 6.6% to 6.3%. The trend recorded, observes Eurostat, is mainly attributable to the resumption of growth in gross domestic product. In absolute terms they are anyway increase your expenses and the proceeds, Eurostat again notes, following the effects of the initiatives taken to counter the crisis triggered by the pandemic. In Italy, between the first and second quarters, the deficit fell 13 to 7.6%. In Germany it decreased from 5.1 to 4.4%, in France from 15.5% to 9.9%, in Spain it rose from 5.9 to 10.9% of GDP.

Yesterday Eurostat had released data for the whole of 2020. In the euro area, the ratio between public deficit and GDP jumped from 0.6% in 2019 al 7,2%, while in the entire European Union from 0.5% to 6.9%. The average debt of the euro countries has risen from 83 to 97% with Greece exceeding 206% e Italy at 155%. The worsening of the relationship is mainly due to the sharp decline in GDP which featured last year. That of the euro area fell by 6.8%, Italy alone scored a minus 8.8%, Greece – 9%.

“The European Union should equip itself with a budgetary capacity by issuing common debt. And to quickly guarantee liquidity and depth to the market of this new instrument, one can think to a common management of a part of the debts of individual countries through a sinking fund that would withdraw national instruments by issuing European bonds “, including” at least the debt incurred by all member countries in the last two years to cope with the effects of the pandemic, “he said yesterday the Governor of Bank of Italy Ignazio Visco in his speech on World Savings Day. It is not a new proposal. For example, the financier talked about it George Soros on the Financial Times already in June 2012, he lies Europe faced the crisis of sovereign debts that were jeopardizing its estate. Debt sharing has never been viewed favorably by Germany and, more generally, from the Nordic countries with more solid public finances than the states of Southern Europe.

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Debts deficits peaks Europe Italy GDP quarter indicators improve

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