Rus News Journal

In debts on all 100

In 2014 the European Union state debt will is equal to cumulative gross national product

the Cumulative state debt of the EU countries the next five years can to reach level of 100 % from gross national product. With such forecast at a meeting of Ministers of Finance analysts of Eurocommission have acted. To avoid negative succession of events, it is necessary to begin gradual decrease in budgetary expenses and state support of national economies.

According to the established norms, the maximum target volume of a public debt of the country - the candidate on the introduction into an eurozone makes 60 %. But in 2008 the debt of all 27 EU Member States has made 61,5 % from cumulative gross national product that on 2,8 % exceeds indicators of 2007. A majority rule of the countries of an eurozone have decided to prolong zatratnye programs on podder ­ zhke economy at least till 2011. As a result of 20 from 27 EU countries will be compelled to break the stability and growth Pact in which it is written down that the state budget shortage level cannot exceed 3 % from gross national product.

According to the Eurocommission report, next year EU state debt will reach 84 % from gross national product, and in 2011 will exceed 88 %. Yesterday its analysts have made also the long-term forecast which gives even less occasions to optimism: in five years the European Union state debt will be equal to cumulative gross national product.

worst of all with financial discipline at Latvia, Spain, Ireland, Great Britain and Greece. Authors of research warn that the financial authorities of these countries the next years are threatened with even more serious tests from - for growth of expenses on public health services and provision of pensions.

in particular, the state debt of Greece which in 2008 was up to standard of 97,6 %, in two years can grow to 135,4 % from gross national product that is a record for an eurozone. State debt growth is unprecedented, its dynamics is a bomb which can undermine all bases of economy - the Minister of Finance of the country Georgios Papakonstantinu who has entered the post one month ago has declared. He has promised that next year budgetary deficiency will be reduced with present 12,7 to 9,4 %, and rates of falling of economy will decrease with 1,5 to 0,3 %.

As experts of Lisbon council and Allianz Group mark, which have published yesterday joint research of economic growth of the EU countries to overcome record growth of a state debt, heads of the European Union should cut down since 2011 budgetary expenses on 2 % in a year. at present stimulation of economy vital. But it is necessary for authorities of the EU countries to be very vigilant, to remember lessons of the past and not to admit formation new bubbles - one of authors of the report Michael Hejze has declared daily.

Ten EU countries with the greatest state debt

the Place the Country % to gross national product
1 Italy 105,9
2 Greece 97,4
3 Belgium 89,1
4 Hungary 68,6
5 France 68,1
6 Portugal 66,4
7 Germany 64,4
8 Austria 60,2
9 the Netherlands 58,2
10 Great Britain 52

the Source: CIA World factbook, 2008