EU faces debt-rule showdown

Massive public borrowing to fund pandemic rescue efforts is forcing a rethink of the European Union’s Stability and Growth Pact. Proposed changes to the SGP are exposing EU political fault lines


Debt-to-GDP ratio (percent, Q4 except for 2021, Q2)
Greece 	Italy	France	Eurozone	Germany


Dec 2019: Virus first detected in China

Jan 2020: Public health emergency declared

176.9	181.9	176.6	207.2	200
135.4	134.0	134.8	156.3	150
97.5	99.7	98.1	114.6	100
91.7	85.9	84.1	98.3	50
39.9	60.9	59.8	69.7	0

60% Debt limit set in SGP
         
2015 2016 2017 2018 2019 2000 2021
            

Christian Lindner: German finance minister says debt must not dictate SGP monetary policy

Mario Draghi: Italian Prime Minister says SGP rules are “obsolete” – wants more flexible interpretation

Klaus Regling: European Stability Mechanism chief says 60% debt ceiling “is no longer relevant”


Sources: Bloomberg, Eurostat, European Union 
Pictures: Getty Images 
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