Consolidation of public finances… The crisis has caused public finances to deteriorate significantly, not only in the euro area, but throughout the advanced world. This can be seen, first and foremost, from the rapid rise in government deficits and debt ratios over a short period of time.
The budget gaps in the United Kingdom and the United States have actually reached double-digit figures, with Japan coming close as well. As regards the euro area, according to the Spring 2010 projections by the European Commission, the government deficit could rise to 6.6% of GDP this year, before moderating to 6.1% in 2011. … and its underlying factors.