26 of 27 EU members will have deficits that exceed the Stability and Growth Pact limit of 3%. Four will have deficits that are above 10%, Iceland 14.7%, UK, 12.9%, Greece 12.2% and Spain 10.1%. The Stability and Growth Pact allows for the deficits to exceed the 3% limit for short-term periods but the idea is that this will move back to equilibrium once a recession is over. Unfortunately, the overall debt to GDP numbers are high and rising.
Looking at the debt as a percentage of GDP, the EU set a limit of 60%. 13 countries exceed this number. The US also is above 60%.
There is a broad developed world deficit problem that exceeds the issues with Greece. Greece is just a test case of what may be in store for Europe.
Looking at the debt as a percentage of GDP, the EU set a limit of 60%. 13 countries exceed this number. The US also is above 60%.
There is a broad developed world deficit problem that exceeds the issues with Greece. Greece is just a test case of what may be in store for Europe.
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