The deteriorating condition of the eurozone’s public finances was highlighted by official data released on Wednesday that showed a significant increase last year in public debt and budget deficits.

According to Eurostat, the European Union’s statistical agency, public debt in the 16-nation area rose to 69.3 per cent of gross domestic product from 66 per cent in 2007. The budget deficit went up to 1.9 per cent of GDP from 0.6 per cent.