Greece, Portugal alone in European South could foreseeably reduce debt in coming decades (report)

Only Greece and Portugal have a realistic prospect of reducing their public-debt-to-GDP ratio in the next two decades, the German Economic Institute said on Wednesday.

According to a report by the Institut der deutschen Wirtschaft (IW), the debt index in the European South is expect to keep rising, especially in France, Spain and Italy. As IW senior economist Bjorn Kauder notes in the report, Greece may be at a worse starting point in terms of numbers, but “will have good prospects during normal times.”

Both Greece and Portugal present noteworthy primary surpluses, while Greece is also benefitting from relatively low interest rates, the German institute says.