Debt of the euro area in 2012 to 88.7% of GDP

A report on public finances of the European Commission published yesterday, the public debt in the euro zone will reach the rate of 88.7% of GDP in 2012, the year the debt will be recorded the highest levels.

In 2007, the proportion of debt 66.3% in the euro area and 59% in the entire European Union. Will be 83.3% in 2012 for the 27 states.

The report said that «the disinfection procedures (public finance), will allow adopted to halt this increase, and indicated the Member States in their stability and convergence of its plans to strengthen these procedures. In the case of States applied its plans, the debt will be stable from now until 2012 ».

If States are unable to honor its commitments, the public debt will decline from now until 2014, but with wide variation by country, so see Finland and Luxembourg to reduce their debt before that date, but Greece, Ireland or Portugal will face more difficulties.

As for the European Commission, the decline in public debt will also require a number of years in Spain and Britain, which Stmzian a long time ago to reflect the trend since the financial crisis.

It was due to present economic affairs commissioner Olli Rehn this report on public finances in the context of a press conference, but canceled at the last minute for personal reasons.