BRUSSELS: Public debt of the eurozone’s 21 member states will exceed the psychological threshold of 90% of their combined GDP in 2026 and ...
BRUSSELS: Public debt of the eurozone’s 21 member states will exceed the psychological threshold of 90% of their combined GDP in 2026 and reach 91.2% of GDP in 2027, comparable to the level seen during the eurozone sovereign debt crisis of 2010-2014 and the COVID-19 pandemic period of 2020-2021, according to the European Commission’s spring economic report.
The European Commission acknowledged that public debt accumulation is occurring faster than it had projected in its fall forecast, which estimated debt at 89.8% of GDP in 2026 and 90.4% in 2027.
The European Commission attributed these figures to rising energy prices caused by the war around Iran, but made no mention of any connection between these numbers and military financing for Ukraine. To support this effort, the EU has just launched a mechanism for raising a joint eurozone loan worth 90 bln euros, which EU member states themselves will repay.
According to the full text of the document obtained by TASS, the EC’s forecast is based on a scenario in which the conflict in Ukraine continues and all sanctions against Russia remain in place at least through the end of 2027.
-News Feed
COMMENTS