The debt crisis in Europe has just begun

Debts of European countries are growing day by day

In brief: Prime Minister of Great Britain, David Cameron said that the British have to spend a few difficult years. The Cabinet is forced to take unpopular measures to reduce social spending, otherwise the country will be bankrupt.

U.S. business TV channel CNBC made a rating of most heavily indebted countries. Experts estimated the total debt relative to GDP of the country. The top twenty of the most “heavily indebted” countries was 17 countries in Europe. The USA took only 20th place. The top rating of debtors took Ireland. Its total external debt (both private entities and state) at the end of 2009 totaled 2.32 trillion dollars. This is more than 13 times the volume of island economies (more precisely, at 1312 percent). In the second place reveals Britain. Its total debt (9.15 trillion U.S. dollars) of 426 percent of GDP.

In addition to reducing british budget, the Cabinet deliberating over in order to increase taxes. In particular, it is expected this year to raise the VAT from 17.5 to 20 percent. Total for 2010 is planned reduction in government expenditures on 7,2 billion euro. Britain’s budget deficit, according to official data, has already reached the level of 11 per cent of GDP and amounted to 156 billion pounds (188 billion euros). Three leaders of the countries with the largest total debt rating CNBC closes in Switzerland. Its debts are estimated by experts to 1.21 trillion dollars, which exceeds the GDP of Alpine state of almost 4 times (382 per cent of GDP). Fourth place – the Netherlands. It is the duty of 2.46 trillion dollars (377 percent of GDP). Fifth place – Belgium. It is the duty of 1.25 trillion dollars (329 percent of GDP). In sixth place was Denmark. Homeland Hans Christian Andersen owed relatively little – only 628 billion dollars, but because of the modest size of the economy it was 318 per cent of GDP. Seventh place – Sweden. It is the duty of 882 billion dollars (265 percent of GDP). Eighth place – Austria with a debt of 828 billion dollars, which is 256 percent of GDP.

France in the ninth spot: 5.3 trillion debt and 248 percent of GDP. From her tiny little behind Portugal, the debt which amounts to 236 percent of the GDP (although in monetary terms, it equals only 724 billion dollars).

Eleventh place – Hong Kong (673 billion dollars and 223 percent of GDP). The next two places in the ranking are occupied by two more representative of the Nordic countries: Finlindiya with a debt of 220 percent of GDP (402 billion dollars) and Norway (202 percent, 553 billion dollars).

At the 14th place is one of the members of the famous among investors in Europe Quartet PIGS – Spain. 2.55 trillion dollars of debt, which amounts to 181 percent of GDP in this country.

“Motor” of the European Union, the country to which they pray in Greece, Portugal and Spain – Germany – takes 15th place. It is estimated CNBC, external gross debt of the country was on the end of 2009, 5.13 trillion (180 percent of GDP). Recall, 6 June, the Government of Chancellor Angela Merkel agreed on a program of budget cuts to 2015 to 50 billion euros.

Official external debt of Germany was only 1.9 trillion euros. However, the estimated independent economist Bernd Raffelhyushena, the actual total debt of the country (including municipalities) of 6.2 trillion euros. By end-2010 debt (even though its method of calculation was different than CNBC) can make is 240 per cent of GDP.

At a modest sixteenth place is Greece – the country due to which the EU has now emerged such complexity. It is the duty of 582 billion dollars (officially recognized by just over 300 billion), representing 170 percent of GDP. At the 17th spot another party PIGS (along with Portugal, Greece and Spain) – Italy. It is the duty of 2.6 trillion dollars (147 percent of GDP).

Country kangaroo, Australia, took the 18th position. 1 trillion dollars and debt and 122 percent of GDP. Compared to Ireland or the UK is almost nothing. The penultimate place in the top twenty is Hungary. Despite more than modest size of the economy, Budapest very hard to get to the top of rankings. $ 225 billion of debt (122 percent of GDP).

And finally, on the 20th place are the U.S., debt issues are not only knows very lazy. The U.S. has a huge debt. It amounts to 13.77 trillion (97 per cent of GDP). This is only slightly smaller than the total external debt of countries such as Britain, Italy and Spain have.

Ukrainian Globalist
2010-06-12 16:33, Economics.

News on: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

One comment к “The debt crisis in Europe has just begun”

  1. Greg NCO Financial Says:

    You know, it’s surprising that the US is not #1 in this…. where does the Ukraine fit in this? And this is the best way of measuring debt…comparing it to how much you make is important. thanks!

Post a comment