Monday, April 23, 2012

The Spanish Netherlands?

The Netherlands has suffered some form of crisis as right-wing populist Geert Wilders' Party does not want to get a balanced budget, but instead want the Dutch to continue to live on borrowed money.
Gross government debt as a
percentage of GDP for
Spain and Netherlands 1996 - 2010
Source: Eurostat

Interestingly there is not much difference between government debt in Spain and in the Netherlands.

The title is of course a pun, the historic Spanish Netherlands is more or less Belgium and not the Netherlands, but it seems that the Netherlands looks a lot like Spain if you look at government debt.
Gross government debt for
the BIGPIS FUK GS-countries
1996 - 2010

In fact, Spain has achieved better fiscal discipline than the Netherlands until the financial crisis in 2008 and the following debt crisis. Both countries were able to meet the eurozone convergence criteria of 60% in debt and less than 2% of the budget deficit until 2007.

However, instead of using the official budget deficit,  I use the year over year change in gross debt as percentage of GDP.

No numbers for 2011 yet.

After all it's still april and Eurostat has not been able to produce any fake figures for 2011.

1 comment:

  1. Read this blog, the swedish version is the best and biggest economics blog in Sweden.