Brussels, 21/10/2013 (Agence Europe) - Europe continued to consolidate public finances in 2012, but saw an increase in debt levels.
In the eurozone, the government deficit to GDP ratio decreased from 4.2% in 2011 to 3.7% in 2012 and in the EU28 from 4.4% to 3.9% (Croatia was included in the calculation), according to figures released on Monday 21 October by the EU's statistical office, Eurostat. The reduction is mainly due to rising income rather than lower public spending. In 2012 the lowest government deficits in percentage of GDP were recorded in Estonia and Sweden (both -0.2%), Luxembourg (-0.6%) and Bulgaria (-0.8%), while Germany (+0.1%) registered a government surplus. Seventeen member states had deficits higher than 3% of GDP, with the largest registered in Spain (-10.6%), Greece (-9.0%), Ireland (-8.2%), Portugal and Cyprus (both -6.4%).
In 2012, average public debt rose to 90.6% of GDP from 87.3% en 2011 in the eurozone and to 85.1% of GDP from 82.3% in 2011 in the EU28. At the end of 2012, the lowest ratios of government debt to GDP were recorded in Estonia (9.8%), Bulgaria (18.5%), Luxembourg (21.7%) and Romania (37.9%). Fourteen member states had government debt ratios higher than 60% of GDP, with the largest observed in Greece (156.9%), Italy (127.0%), Portugal (124.1%) and Ireland (117.4%). In all, six member states recorded an improvement in their government debt relative to GDP in 2012 compared with 2011 and 22 a worsening. (MB/transl.fl)