The European Union's public debt could by 2014 rise to 100 per cent of gross domestic product – a year's economic output – unless governments take firm action to restore fiscal discipline, EU finance ministers will be warned today.
The stark message is contained in a European Commission analysis, which highlights the rapid deterioration in EU public finances caused by emergency measures in the past 12 months to rescue Europe's financial sector and combat recession.
Finance ministers of the 16- nation eurozone will discuss the Commission's paper at informal talks this evening, and it will also be addressed at a meeting tomorrow of all 27 EU ministers.
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