BRUSSELS ― Debt in the eurozone grew in the first three months of the year as France struggled to keep its finances in check after weeks of political turmoil.
The 20 countries of the currency area recorded debt of 88.7 percent of GDP, up from 88.2 percent in the previous quarter, Eurostat, the EU’s statistics body, said.
The slightly more positive news is that the eurozone’s deficit ― the difference between how how much governments spend and collect ― shrank in the first quarter, to 3.2 percent of GDP from 4 percent.
France, whose debt status is being closely watched after a ratings downgrade and political instability sparked by President Emmanuel Macron’s announcement of snap elections, saw its debt go up by 0.9 percentage points of GDP compared with the previous quarter.
Greece continues to be the most indebted country in the eurozone, with total debt at almost 160 percent of GDP. However, it is also the country that is paying it down the fastest, with a 2.1 percentage-point decrease compared with the fourth quarter of 2023.
In Western Europe, it’s Belgium that saw the fastest increase in debt relative to its economy, with a 3.1 percentage-point increase quarter-on-quarter.