At the end of the first quarter of 2021, still largely impacted by policy measures to mitigate the economic and social impact of the coronavirus pandemic and recovery measures, which continued to materialise in increased financing needs, the government debt to GDP ratio in the euro area exceeded 100% for the first time – the ratio stood at 100.5%, compared with 97.8% at the end of the fourth quarter of 2020.
In the EU, the ratio increased from 90.5% to 92.9%. Compared with the first quarter of 2020, the government debt to GDP ratio rose in both the euro area (from 86.1% to 100.5%) and the EU (from 79.2% to 92.9%).
In the EU, the ratio increased from 90.5% to 92.9%. Compared with the first quarter of 2020, the government debt to GDP ratio rose in both the euro area (from 86.1% to 100.5%) and the EU (from 79.2% to 92.9%).
At the end of the first quarter of 2021, debt securities accounted for 82.6% of euro area and for 82.2% of EU general government debt. Loans made up 14.2% and 14.7% respectively and currency and deposits represented 3.2% of euro area and 3.1% of EU government debt. Due to the involvement of EU Member States' governments in financial assistance to certain Member States, quarterly data on intergovernmental lending (IGL) are also published. The share of IGL as percentage of GDP at the end of the first quarter of 2021 accounted for 2.0% in the euro area and to 1.7% in the EU, EuroStat reports.
The highest ratios of government debt to GDP at the end of the first quarter of 2021 were recorded in Greece (209.3%), Italy (160.0%), Portugal (137.2%), Cyprus (125.7%), Spain (125.2%), Belgium (118.6%) and France (118.0%), and the lowest in Estonia (18.5%), Bulgaria (25.1%) and Luxembourg (28.1%).
Compared with the fourth quarter of 2020, twenty-three Member States registered an increase in their debt to GDP ratio at the end of the first quarter of 2021, two a decrease, while the ratio remained stable in Slovakia and Bulgaria. The largest increases in the ratio were observed in Cyprus (+6.5 percentage points – pp), Czechia (+6.3 pp), Spain (+5.3 pp), Slovenia (+5.2 pp), Belgium (+4.4 pp), Malta and Italy (both +4.2 pp). The decreases were recorded in Lithuania (-1.5 pp), and Denmark (-1.4 pp).
Compared with the first quarter of 2020, all Member States registered an increase in their debt to GDP ratio at the end of the first quarter of 2021. The largest increases in the ratio were recorded in Cyprus (+29.5 pp), Greece (+28.6 pp), Spain (+26.2 pp), Italy (+22.1 pp) and Portugal (+18.0 pp), while the lowest increases where observed in Ireland (+1.7 pp), Sweden (+4.5 pp), Bulgaria (+5.0 pp), the Netherlands (+5.6 pp), Finland (+5.9 pp) and Luxembourg (+6.0 pp).
