British debt mountain grows over two trillion pounds for the first time

GGreat Britain’s national debt is rising to a record level due to the Corona crisis. Public debt surged above the two trillion pound mark (around 2.2 trillion euros) for the first time in July, according to official data on Friday. The debt ratio rose to 100.5 percent of economic output, the highest level since 1961, when the United Kingdom was still paying the costs second worldwar had to digest. Accordingly, the debt is higher than the total economic output. For comparison: The Bundesbank expects the debt ratio in Germany to rise “towards 75 percent” this year. According to the Maastricht criteria, only 60 percent are actually allowed.

The British Treasury Secretary Rishi Sunak is now under pressure because, according to experts, he would have to further increase emergency aid for the economy, which has been badly shaken by the virus pandemic. Sunak said the crisis was weighing heavily on public finances, but without the huge government spending, things would have been much worse. “Today’s numbers are a clear reminder that over time we need to get our public finances back on a sustainable footing,” he said. That will require difficult decisions. “That is why we are now taking action to support the growth and jobs that finance our public services.”

Debt had soared by around £ 200 billion since the virus pandemic. British budget experts recently warned that debt could soar sharply to £ 2.5 trillion by the 2022/23 fiscal year.

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