Economy & Politics

These EU countries have the lowest government debt ratios

The EU plans to support the European economy with a reconstruction fund of 750 billion euros. The international community wants to borrow the necessary money on the capital markets – the loaned amount is to be repaid jointly between 2027 and 2058.

In doing so, the EU is following the example of many member states who got into debt during the crisis in order to implement economic stimulus and rescue packages. Germany also suspended the debt brake for its own aid measures in March and passed two supplementary budgets – with a volume of 156 billion euros in March and 62.5 billion euros in June.

In ailing countries like Italy, however, the mountain of corona-related debt is now growing to a worrying size. Forecasts already anticipate a government debt ratio of 160 percent by the end of the year. By way of comparison: the last time the Italian government debt ratio was measured against economic output was 135 percent. By contrast, other countries had a particularly low government debt ratio before the crisis, according to the European statistical office Eurostat. They could also have an advantage in times of crisis due to their low debt levels.

These European countries have the lowest government debt ratios

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