There has been a real improvement in eurozone public finances, but it is highly unequal. At the eurozone level, the process of cleaning up public finances continues.
Austerity is winding down, growth is picking up the slack and debt ratios are levelling off. Many countries still have not managed to stabilise their public debt ratios, although stabilisation is effectively within reach.
This year, the European Commission estimates that the eurozone's fiscal policies could be basically neutral, with the structural deficit holding at 0.8-0.9% of GDP. Concurring with an upturn in economic activity - which is expected to swell this year - more relaxed fiscal policies have not prevented further improvement in the nominal public finance deficit.
"Debt ratio should begin to narrow in 2015, and any acceleration in growth would only boost this favourable momentum." says BNP Paribas
