Yahoo! NEWS by Gabriele Steinhauser
BRUSSELS (AP) — The
17 countries that use the euro still face an uphill struggle to control
their debts in spite of managing to slash government deficits to 4.1 percent of economic output in 2011, official data show.
Figures
reported Monday by the European Union's statistics office confirmed the
effects of harsh austerity programs on the eurozone members' economies,
which in 2010 ran an overall deficit of 6.2 percent of gross domestic
product. Yet despite these efforts, overall debt rose from 85.3 percent
of GDP to 87.2 percent — the highest level since the euro was created in
1999.
After a financial
crisis that has now dragged on for close to five years, Monday's figures
underline how difficult it will be for the eurozone to bring its
deficits and debts back below the EU-stipulated limits of a deficit of 3
percent and debt of 60 percent of GDP.
This
task will become even harder if the eurozone's economy has fallen back
into recession. Separate data also released Monday indicated that the
private sector in the 17-country block continued to shrink in April. The
purchasing managers' index for eurozone, compiled by private data firm
Markit, fell to a five-month low of 47.4, down from 49.1 in March. A
level below 50 means that the private sector is contracting. MORE.........
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