Spain's public debt amounts to 101.4% of GDP, more than 11 points above the eurozone average, according to Eurostat figures gathered in the political debate on indebtedness.
According to Última Hora, the leader of the Popular Party stated in an interview on Cadena SER that Spain has a very high level of debt, comparable to Italy and France. Official figures from Eurostat clarify that comparison: Spanish debt is equivalent to 101.4% of GDP.
With this percentage, Spain exceeds the eurozone average by just over 11 points, set at 88.8%, and ranks fifth among the most indebted countries in the European Union. Ahead are Greece, nearing 140% of GDP, Italy, at a similar level, France, at 120%, and Belgium, at 108%.
Measured per capita, the difference scales differently: 36,000 euros per citizen in Spain, compared to a figure of between 52,000 and 54,000 euros in France and Italy. In interest payments, the Spanish state allocates about 40 billion euros a year, double its defence budget, while France exceeds 60 billion and Italy hovers around 90 billion.
The final cost depends on the interest rates at which each treasury places its securities. French ten-year bonds exceed 5%, Italian bonds are quoted at 4.60%, and Spanish bonds are slightly above 4%. All three countries will need to refinance maturities at market rates significantly higher than those of the last decade.
The comparison allows for two interpretations. Against the eurozone average or northern countries, Spain's position is poor. Compared to Italy and France, the relative margin is greater, but the stability of both is key for the region: a shock in their financial markets would increase credit costs in the rest of the Spanish economy.
The European Union sets a limit of 60% of GDP for public debt and requires fiscal adjustments from countries that exceed it. Spain, according to the analysis, meets this requirement thanks to the containment of annual spending, which does not reach the 3% limit.
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