In the second quarter of 2023, the seasonally adjusted ratio of the public deficit to GDP was 3.3% in the euro area, stable compared with the first quarter, and 3.2% in the European Union, compared with 3.1% in the first quarter, according to data published by the EU’s statistical office (Eurostat) on Monday 23 October.
According to Eurostat, measures to mitigate the impact of high energy prices continued to have a strong impact on public finance balances in the second half of 2022 and the first half of 2023.
Of the 24 countries for which data are available, the highest public deficits were recorded in Hungary (6.6%), Romania (6.3%) and Slovakia (4.8%). Three countries recorded a budget surplus: Portugal (2.3%), the Netherlands (0.2%) and Latvia (0.1%). The deficit was under control in Germany (2.6%) and still high in France (4.6%) and Spain (4.4%).
Public debt. Again according to Eurostat, at the end of the second quarter, the ratio of public debt to GDP in the euro area stood at 90.3%, compared with 90.7% at the end of the first quarter. In the EU, it also fell, from 83.4% to 83.1%.
This reduction in public debt is due to the fact that GDP growth in absolute terms has been greater than the increase in public debt.
The highest ratios of public debt to GDP were recorded in Greece (166.5%), Italy (142.4%), France (111.9%), Spain (111.2%), Portugal (110.1%) and Belgium (106.0%). They were lowest in Estonia (18.5%), Bulgaria (21.5%), Luxembourg (28.2%), Denmark (30.2%) and Sweden (30.7%). (Original version in French by Mathieu Bion)