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Debt Spanish public for the first time exceeded one trillion euros
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The data published by the Bank of Spain until June make it clear that government forecasts the National Reform Plan are met: public debt could reach 99.5% at year end because amounts to 98.4% of GDP
<. p> We are well above the average of the European partners. According to latest Eurostat data at the end of 2013, the average debt eurozone is 92.6% , and European Union , 87.1%.
The Spanish government debt represents about 22,000 euros per capita. Every inhabitant of the 46.7 million census must 21,898 euros.
A spiral that will continue to increase, calculations Economy placed in 2015 public debt beyond 100% of GDP at 105% in 2016 would begin only in 2017 again to relax up to 98.5%.
We would like maximum Historic. According to a historical study of International Monetary Fund (IMF) the Spanish public debt exceeded or brushed 100% of GDP between 1900 and 1909 had its maximum level (149% of GDP) in 1881, the year he began to be recorded, and its minimum in 1975 (7.3% of GDP).
is the bill for the crisis. Since 2008 , debt Spain has been increasing. So it was in Euros 436,984,000 of the 40% of GDP . An enviable level that many economists believe that when the level of debt exceeds 100% capacity growth slows country.
In fact, debt increases in parallel to deficit . If you spend more than what is entered, and that is reflecting the deficit, the Administration must borrow from the markets by issuing debt.
The Minister of Economy, Luis de Guindos , a few months ago blamed the rise in public debt accumulated deficit, specific measures such as payments to suppliers or Autonomous Liquidity Fund , which provides funds regions pay their debts, and issues such as financial assistance program for Spanish banks.
The maximum debt worries that many economists consider it a factor that slows the growth capacity of a country. This coupled with low inflation, becomes a vicious cycle because more debt, more growth is needed to ‘return’ the money.
So any growth should be higher. The economy must grow enough to cope with the debt repayments plus interest that are required . And also allow turn reduce the deficit because it raises more, “said José García Solanes, Professor of Macroeconomics University of Murc ia. As explained, to put the counter zero debt, “as shown in macroeconomics”, GDP should grow “a higher rate than real interest. I mean should be subtracted from the nominal type State pays for its debt on average, the level of inflation, “he says.
That is, low inflation complicates the deficit reduction because debt increases. For example, if the interest rate is 3% and inflation is negative, 1%; real rates increase to 4% .
| Country | Debt at end-2013 according to Eurostat |
| Belgium | 101.5% |
| Denmark | 44.5% |
| Germany | 78.4% |
| Ireland | 123.7% |
| Greece | 175.1% |
| France | 93.5% |
| Italy | 132.6% |
| Cyprus | 111.7% |
| Netherlands | 73 5% |
| Austria | 74.5% |
| Portugal | 129% |
| UK | 90 7% |
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