The deficits are also unlikely to improve significantly until economic growth picks up, providing government with more tax revenue. Based on Thursday’s figures, progress is likely to be slow.
Despite all this, stock markets are booming. Germany’s DAX, for example, has hit a record high. Indexes across the eurozone are posting solid gains. One reason is that few investors now think that the euro will break apart. U.S. bank Citigroup, which is credited with coining the term “Grexit” to describe the possibility of Greece’s departure from Europe’s single currency, now says it’s unlikely.