In 2016, the public debt of the eurozone fell back below the 90% mark of the gross domestic product (GDP) to stand at 89.2%, according to statistics published on Monday, April 24 by Eurostat.
After peaking at 92% in 2014, the debt of the monetary union recorded its second consecutive year of decline.
France, on the other hand, confirmed its lag: between 2013 and 2016, its debt rose from 92.3% to 96%.
In detail, the situations of the different states are very contrasting.
Greece still records the highest debt (179% of GDP), followed by Italy (132.6%) and Portugal (130.4%), then Cyprus (107.8%). Conversely, Estonia (9.5%), Luxembourg (20%), and Bulgaria (29.5%) have the lowest rates.
Germany has improved its situation. The debt of our neighbors is 68.3% of GDP.
The changes in public deficits are even more striking. That of the eurozone was displayed at 1.5% of GDP in 2016, compared to 2.1% in 2015. This is well below the 3% of GDP limit imposed by European budgetary rules. In 2010, it peaked at 6.2% of GDP across the eurozone.
The consolidation policies have had their effect: out of the twenty-eight countries of the European Union, only four still display a deficit equal to or greater than 3%: among them, France (3.4%). As for the rest, twelve European countries have a balanced or surplus budget.
While most countries have now exited austerity policies, public expenditures in the eurozone have on average decreased from 48.5% to 47.7% of GDP between 2015 and 2016. Due to its generous social protection, France still holds the record in this area (56.2% of GDP, a decrease of 0.5 percentage points over a year).
The return of growth also contributed to the reduction of deficits. Last year, the eurozone indeed saw its GDP grow by 1.7%.
