Eurozone debt soars on Covid-19, tearing North and South apart
Differences in indebtedness in the EU, with the eurosceptic and poorer parties in the South, could seriously test the bloc’s unity
22 April 2020 - 12:04
Brussels — Eurozone government debt will surge in 2020 due to the coronavirus pandemic, but while another debt crisis is unlikely, large differences in indebtedness as countries emerge from the downturn could seriously test their unity.
The International Monetary Fund (IMF) expects debt in the 19 countries sharing the euro to jump by more than 13% of GDP to 97% this year as Europe-wide lockdowns cause an unprecedented 7.5% eurozone recession. But despite huge expected borrowing, the effect on yields has so far been small...
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