Impact of crisis on EU public finances John Verrinder (D3)

Eurostat public finance data Deficits and Debts (quarterly and annual) Detailed data, e.g. Expenditure by function (pensions, health,…) Revenue by tax Financial balance sheets and transactions Impacts of the government interventions in financial institutions Both on deficit/debt and contingent Note: lots of detailed information also released by national governments, not harmonised…

Government debts just keep growing EU27 "Maastricht Debt" as % GDP

EU27 government expenditure (red) and revenue (blue) as % of GDP

The challenges during the financial crisis… Large one-off impacts on deficits and debts from bank rescues More government guarantees, and crystallisation of government explicit and implicit guarantees Complex operations involving government debt (e.g. Greece) EFSF and ESM (Euro-level issuers) Major public sector and structural reforms (privatisations, pensions, rationalisation etc) Particularly in "programme countries"

…for Ireland (Govt deficit as %GDP)

Irish debt in context (as %GDP)

Future developments More data (from Directive on fiscal frameworks) Government guarantees Public corporations' liabilities and govt interests Non-performing loans Public-Private Partnerships (Monthly and quarterly data) Communication to users Explaining banking-related impacts Public Sector Accounting Standards