The usual performance indicator of Government debt is the ratio of debt to GDP. The 10 highest debt ratio countries in the EU in 2017 include Greece at over 178% and Italy at almost 132%. The Irish debt to GDP ratio has greatly improved in recent years, mainly because of the unprecedented increase in the monetary value of GDP in 2015. If EU debt targets were expressed in terms of the modified GNI measure the public finances would be very constrained. The main worry is that the high levels of existing debt constrain the ability of Government to respond appropriately and adequately to possible future economic shocks.

Source: Irish Examiner May 14, 2018 06:11 UTC