Eurozone Debt Finally On The Decline

The euro remained near $1.35 after news that the region's debt level declined in the third quarter. The common currency traded at $1.3545 at 6:24 GMT on Thursday morning. After months of grueling austerity programs and government spending cuts, it seems the eurozone's debt level is on the decline. Reuters reported that the region's government debt fell for the first time in almost six years. Many see the decline as a clear sign that the bloc has turned a corner and is on the road to recovery. The eurozone's three largest economies, Germany, France and Italy all posted significantly lower sovereign debt figures relative to GDP. German debt fell to 78.4 percent of GDP and France's was down to 92.7 percent. However, debt in proportion to national output rose in both Greece and Spain, where the crisis initially began. Greek debt was up to 171.8 percent of GDP while Spanish debt reached 93.4 percent. Debt for the region as a whole fell from 93.4 percent to 92.7 percent in the third quarter, the first time the bloc has seen a decline since the final quarter of 2007. European Commission spokesman Simon O'Connor said the eurozone's efforts to make necessary adjustments are the main reason for the improvement. However, the bloc is far from the 60 percent debt limit outlined in the European Union's treaty. Currently, the only nations meeting those conditions are Estonia, Latvia, Luxembourg and Slovakia. Nevertheless, the figures are in line with expectations that the eurozone will stabilize this year and return to growth.