The so-called new Member States of the European Union, including Poland, recorded lower public finance debt than those in the euro area last year. Moreover, our region has shown stable GDP, not exceeding the EU average.
Even worse was the situation in the euro area, where this relationship increased over the same period with 91.1% to 92.1%.
Poland, primarily as a result of the acquisition of OFE assets by the State, registered a very favourable debt-to-GDP ratio – 56% the average relationship in the Union, in which only it overtakes it nine other countries. End third quarter 2014 the ratio of government debt to GDP in 28 Member States of the Union were 86.6% and was 1.3 point % higher than the year before. Even worse was the situation in the euro area, where this relationship increased over the same period with 91.1% to 92.1%.
Comparing these results with previous years, public debt in the European Union has grown alarmingly. Several countries are trapped in debt, such as Italy, Ireland and Spain. These countries with the common name PIIGS record an increase in the debt-to-GDP ratio.
Italy's public debt increased by 65,000,000,000 EUR, in Spain increased by 59,000,000,000 EUR. The growing debt forces budget cuts, a lack of investment resources and increased taxes. These countries may be cut off from EU funds.
The budgetary deficits are a concern for the new Members of the Union to face the burdens they have to pay for their joint membership.
Debt-to-GDP ratio in % 3 kw. 2014
3 kw. 2013 3 kw. 2014 Amendment Debt securities Loans
Greece
171
176
5
39
136.5
Italy
127.8
13.8
4
111.2
10.5
Portugal
127.8
131.4
3.6
66.6
56.8
Ireland
124.2
114.8
-9.4
63.7
39.5
Spain
91.8
96.8
5
77.3
19.1
United Kingdom
86.6
87.9
1.3
78.7
1.6
EU[28]
85.3
86.6
1.3
81
15.3
Hungary
78.4
80.3
1.9
66.8
13.4
Germany
76.9
74.8
-2.1
54.7
19.7
Slovakia
56.5
55.4
-1.1
47.9
7.4
Poland
56.6
48.6
-8
38.7
9.8
Czech Republic
45.1
43.8
-1.4
39.6
4
Estonia
10
10.5
0.4
1.3
9.2
Source: own development
The analysis of the financing of public debt shows a repayment mechanism based on government debt repayment – for credible countries, such as the UK or loans and loans, as shown by the example of Greece. Poland repays public debt in a balanced way, based on national currency.