Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.

Stephanie Flanders at the BBC ran through the math and has a citation for the last two quarters.

The surplus was achieved solely through cuts because revenue is still paltry.

BUT, when you consider that the amount of debt isn't going down (the budget deficit is still 9-10%), then all numbers are now relative to the budget which has shrunk by 19% so far and is being cut another 6% soon.

They went from a 15% budget deficit to 9%. Meanwhile, their debt rose from 115% debt to GDP to 150%. This phenomena is primarily because of the huge contraction in the budget.

by Upstate NY on Sun Feb 12th, 2012 at 03:36:49 PM EST
[ Parent ]
The Oecd said something like 9% deficit and 6.9% net debt interest. That would still have been 2.1%. Now 5.1 billion less 1.8 billion is still  3.3 billion.

That said if the result of the last half year was relatively positive, why is everybody so hysterical right now? That the debt would still rise in 2011 should have been clear at the beginning of this year.

by IM on Sun Feb 12th, 2012 at 03:57:21 PM EST
[ Parent ]
I don't know. Obviously, no one's data should be trusted. I'm not sure if the principals know.
by Upstate NY on Sun Feb 12th, 2012 at 05:10:08 PM EST
[ Parent ]
why is everybody so hysterical right now?

Because they are pushing a political agenda and public hysteria is a useful tool?

Because those Serious People comprising your 'everybody' mostly have few clues as to what is going on but can accurately judge how the public will react to their histrionics and posturing?

Both of the above?  

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Feb 12th, 2012 at 05:18:25 PM EST
[ Parent ]


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