Europe debt up ?500bn last year - with Britain's burden at 85% of national income

By Hugo Duncan

PUBLISHED: 16:33 EST, 22 October 2012 | UPDATED: 16:33 EST, 22 October 2012

Europe's crippling debt burden increased by ?500billion last year ? with Britain?s finances among the worst anywhere on the Continent.

The Eurostat statistics agency yesterday said government debt in the European Union jumped from ?8trillion in 2010 to ?8.5trillion in 2011 ? or 82.5 per cent of gross domestic product.

The debt burden was highest in Greece, at 170.6 per cent of national income, followed by Italy at 120.7 per cent, Portugal at 108.1 per cent, Ireland at 106.4 per cent, Belgium at 97.8 per cent, France at 86 per cent and the UK at 85 per cent.

Finances: Greece, Italy and Portugal have the highest debt burden in Europe

In total, 14 of the 27 countries in the EU had debt higher than the 60 per cent of GDP permitted under European law. Eurostat also said that 17 countries ran deficits above the 3 per cent of GDP permitted by EU law ? once again, this included Britain.

The overall EU deficit fell from 6.5 per cent in 2010 to 4.4 per cent in 2011 but the worst offenders were Ireland with a shortfall of 13.4 per cent, Greece and Spain with 9.4 per cent, and the UK at 7.8 per cent.

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Towering debts and deficits across Europe have dampened growth and undermined investor confidence amid worries about default.

Greece, Ireland and Portugal have already been forced to request international bailouts, and it is thought that Spain could be the next domino the fall.

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Source: http://www.dailymail.co.uk/money/news/article-2221568/Europe-debt-500bn-year--Britains-burden-85-national-income.html?ITO=1490

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