Spain leads in debt and deficit in the EU in the second quarter




Spain returns to the top of the European statistics, but
not in growth data
, but debt and deficit. Our country registered the third highest public deficit rate in the European Union in the second quarter of this year, 7.3% of GDP, and the fourth in terms of the level of debt, 122.8% of the GDP, as published this morning by Eurostat.

Our country thus remains at the head of Europe in deficit and debt despite the fact that the figures have given a certain respite accompanied by the
vaccination advance
and the improvement in the economic tone after the lower restrictions imposed on the activity. In fact, the Spanish deficit fell 1.1 percentage points in the second quarter with respect to the 8.5% which marked in the first quarter of the year.

It remains nonetheless
among the highest in the European Union
, only surpassed by 9.6% from France and 8.5% from Hungary. Nor is the news better when it comes to public debt. The 122.8% of Spain in relation to GDP is only surpassed by Greece (207.2%), Italy (156.3%) and Portugal (135.4%).

In addition, Eurostat indicates our country as one in which the level of debt increased the most. «The largest increases in the debt ratio were recorded in Greece (+ 15.9%), Spain (+ 12.5%), malt (+ 10.8%) and Portugal (+9.1 points%), while decreases were observed in Ireland (-3.1%), Denmark (-1.5%) and Netherlandss (-0.8%) “, remarks Eurostat.

Despite the deep scar that the pandemic has left in the public accounts of the Old Continent, vaccination is beginning to be noticed, albeit timidly, throughout the Eurozone in a generalized way. The data published this morning by the community statistics office reveals that
the euro zone deficit
fell two tenths of a percentage compared to the previous three months (from 7.1% to 6.9%) and three tenths in the European Union as a whole (from 6.6% to 6.3%). For its part, public debt fell 1.7 percentage points in the euro area (from 100% to 98.3%) and 1.5 points in the community club (from 92.4% to 90.9%).

Long and tedious road

The road to normalization of public accounts after the stake of the pandemic seems long and tedious. Only two of the Member States for which Eurostat has data in the second quarter achieved a surplus: Luxembourg and Denmark. The countries with the lowest debt rates were Estonia (19.6%), Bulgaria (24.7%) and Luxembourg (26.2%).

‘In both the euro area and the EU, the decline in the public debt-to-GDP ratio at the end of the second quarter was due to the recovery in GDP, while debt continued to rise due to the financing needs of the policies adopted to mitigate the economic and social impact of the coronavirus pandemic, ”says Eurostat.

“Decreases in the deficit were observed compared to the first quarter of 2021, but it remains at a high level. The ratio to GDP declined primarily due to higher growth, while both spending and revenue increased in absolute terms compared to the first quarter of 2021. Total revenue and total spending continued to be influenced by political responses to the pandemic in COVID-19 », ditch.

And it is that despite the fact that public spending destined to lessen the effects of the pandemic fell somewhat in the period, public income has not yet managed to rise. According to Eurostat,
total public revenue
of the euro area amounted to 46.2% of GDP, slightly less than the 46.7% of the first quarter of 2021. Regarding public spending, it amounted to 53.1% of GDP, a figure that is below the 53.8% in the first quarter of the year.

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