Public debt in the European Union continues to rise
According to the latest 2021 figures from Eurostat Last year, France, Italy and Germany had the highest total consolidated government debt in the European UnionThe level of public debt in these three countries alone exceeds 2 trillion euros (while the United Kingdom was a member state of the European Union, it was also in the top three).
Last year’s debt figures also showed the effects of the coronavirus, with only a handful of countries on the list seeing a rise in public debt in a year. However, the exceptions are Cyprus, Denmark, Sweden and Portugal.
Hungary, with 115 billion euros, is roughly in the middle, Our total debt increased by more than 9 billion euros in one year:
Let’s keep the first place
Eurostat data also shows the share of households and non-profit organizations serving households in total government debt. Hungary, as it was a year ago, is still in third place In the EU rankings,
Only the Italians and the Portuguese had more public debts than the Hungarian families.
However, this is also true In terms of total value, the government debt stock of households and non-profit organizations increased in just one year in Hungarysome declines were observed in Italy and Portugal.
In Hungary, a larger increase in stocks can be seen in 2019, clearly due to the launch of super government securities, but the impact of MÁP + was not significant in 2020 or 2021 either.
And the full list Only the stock of government securities of the Polish population grew in one year greater than that of the Hungarian population:
If we look at the proportions, Hungary is still number one:
According to last year’s data, we maintain our leadership position for a long time, and therefore the Hungarian population owns the largest share of public debt in the European Union, at 24%.
However, it should be noted that this is a decrease of 24% compared to 27% in 2019, largely due to the fact that previous pending demand for MÁP+ has already weakened, and although stocks of inflation-linked government securities are rising , as far as it can affect ratios (at least in terms of last year’s numbers).
A similar trend can be observed in Malta also where Previous population proportion of over 23% decreased to 16%third place Portugal also experienced a decline. At more than ten percent, only Ireland is on the list outside of these countries.
There are also countries on the list, not a few, where the purchase of government securities by households has never been proven, In 15 member states, the proportion of the population does not exceed 1% within the total government debt.
Among the countries of the region, the Polish, Romanian and Czech residents managed to somewhat increase their ownership share in the public debt.:
Long-term papers are preferred
More details can also be seen on the distribution of government debt held by households among securities with a maturity of less than one year.
In this case, it is clear that 16% in Malta is entirely due to maturities of more than one year, while In Hungary, 2.8% of 24% are due to shorter maturities (This rate decreased in one year.) Unsurprisingly, the shift towards longer maturities in Hungary was truly astonishing: in 2018, the maturity structure shifted towards shorter maturities of 11%-9%, Since 2019, with the rise of super government securities, long-term securities have become a mainstay..
The most interesting is that Longer maturities continued to rise, Thus, the shift towards long-term securities continues among the population.
The short-term ratio is higher in Hungary than in Portugal and Ireland, the latter having a broader balance between shorter and longer maturities in captivity.
Cover Photo: Getty Images
