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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