International Affairs
1 June 2011 , Volume 67, Number 3

Considerable headwinds are hampering efforts to bring debt under control. Firstly, annual interest costs alone will be as much as seven to eight percent of GDP and rising as debt is now estimated to reach around 150 percent of GDP in 2011. Thus the government will not be able to reduce the budget deficit unless it achieves a substantial surplus on the primary budget - the balance between revenues and noninterest expenditure.


Vanessa Rossi
(Former Chatham House Expert)

Will Jackson

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