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Debt of Six Eurozone Countries Exceeds 100% of GDP, Two More Coming in 2015 (France and Spain)

IMG Auteur
Mish
Global Economic Analysis
Published : February 02nd, 2015
202 words - Reading time : less than a minute
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Category : Opinions and Analysis

In 2014 there were six eurozone countries whose debt-to-GDP ratio went over the 100% threshold. Two additional countries will pass that barrier in 2015.

The Maastricht Treaty on which the euro was founded was designed to keep "sound fiscal policies", with debt limited to 60% of GDP (not 100%), and annual deficits no greater than 3% of GDP."

Every country in the eurozone, including Germany, has been in violation of those rules. Let's take a look at the biggest violators as reported by El Economista. Data is from second quarter of 2014 (undoubtedly worse now).

100% Debt-to-GDP List

  1. Italy 133%
  2. Portugal 129.4%
  3. Ireland 116.7%
  4. Cyprus 112.2%
  5. Belgium 105.1%
  6. Greece 174.9%
  7. Spain 100.3% (2015 estimate)
  8. France 100% (2015 estimate)

In regards to France, Laurent Bigorgne, director of the Institut Montaigne, predict that French liabilities will not stabilize, but will continue to progress."

That certainly seems like a very safe prediction.

Wild Blue Yonder

And as debts soar off into the wild blue yonder, the need to keep interest rates at 0% to perpetually mask the problem increases.

I offer this musical tribute to celebrate the Keynesian policies that perpetuate wild blue yonder government spending and absurd central bank policies.



Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Data and Statistics for these countries : Belgium | Cyprus | France | Germany | Greece | Ireland | Italy | Portugal | Spain | All
Gold and Silver Prices for these countries : Belgium | Cyprus | France | Germany | Greece | Ireland | Italy | Portugal | Spain | All
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IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit http://www.sitkapacific.com
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