Thursday, April 22, 2010

EU Sovereign Debts Exploded In 2009

Recent predictions by ECB staff that warned of 16 years of pain before sovereign debt levels in the Eurozone would recede to the treaty level of 60% are getting backed up by the accelerating trajectory of the European debt pile-up, new Eurostat data shows. Desperately trying to immunize their countries against the Eurozone recession 2009, governments have embarked on a spending spree that resulted in an increase of public debts by a breathtaking 225% in 2008 and and an equally horrendous 211% in 2009, when they took on new debts of € 565 billion after €181 billion a year earlier.
So far these new stones around taxpayer's necks have not yet resulted in more than a modest bounce back in some industries that may find an explanation in the most recent decline in construction activity.
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