The Eurozone is caught in a debt trap. To keep countries able to service their debts, the European Central Bank (ECB) will likely devalue the euro and maintain low interest rates. This comes as public debt continues to climb, even with the region just barely entering a recession. The situation raises questions about the Eurozone's resilience, especially if the recession deepens and tax revenues plummet, a common occurrence during severe crises. Optimists may be in for a shock if they believe a swift return to stable growth is possible.

Eurostat reports that Eurozone public debt slightly increased in Q1 2023. The debt-to-GDP ratio rose to 88.7% from 88.2% in the previous quarter, with total debt reaching €12.926 trillion, up from €12.733 trillion.