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Government debt weighed less on euro countries in the second quarter than in the previous three months. Euro countries still eagerly borrowed to pay for corona support packages, but compared to the size of the economy, the debt burden was smaller.

 

Due to the relaxation of corona measures, the economy grew faster than the debt mountain, reports European statistics agency Eurostat.

Total debt in the second quarter equalled 98 percent of gross domestic product (GDP) in the eurozone. That was 100 percent a quarter earlier. Debt also declined across the European Union.

Eurostat reports a debt of 54.2 percent of GDP for the Netherlands. In line with the European trend, this is a small decrease compared to the situation in March.

European fiscal rules prescribe that the government debt may not exceed 60% of GDP. However, these rules have been suspended for the time being due to the corona crisis.

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