Brussels, 22/03/2002 (Agence Europe) - According to statistics published on Thursday by Eurostat, the government balance of the eurozone was in deficit at 1.3% of GDP in 2001, compared with a surplus of 0.2% of GDP (Gross Domestic Product) in 2000. This deterioration in government finance in the eurozone is due to the greater slowdown than forecast in economic growth, which cut tax revenue and caused an increase in social security expenditure. For the EU as a whole, the government balance moved from a 1.1% surplus in 2000 to a 0.6% deficit in 2001.
Eurostat notes that several countries continues to register large surpluses, like Luxembourg (5.0%), Finland (4.9%) and Sweden (4.7%), followed by Denmark (2.5%), Ireland (1.7%) and the UK (0.9%). The greatest deficits were recorded in Germany (2.7% deficit compared with a 1.2% GDP surplus in 2000), Portugal (2.2%-, France and Italy (both with a deficit of 1.4%). Slight surpluses were recorded in Belgium (0.2%), Greece (0.1% after being in deficit in 2000 at 0.8% of GDP), the Netherlands (0.2% compared with a surplus of 2.2% in 2000) and Austria (0.1% compared with a deficit of 1.5% in 2000). The only country where the budget was in balance was Spain.
Eurostat explains that the ratio of government debt to GDP decreased in the eurozone from 69.5% in 2000 to 69.1% in 2001, as it did in the EU15 (from 63.9% to 63.0%). The ratio was reduced in all Member States in 2001 compared with 2000, apart from Portugal and Sweden where it rose from 53.4% to 55.6% and from 55.3% to 56.0% respectively. Four countries had a ratio of over 60% of GDP: Italy (109.4%), Belgium (107.5%); Greece (99.7% and Austria (61.7%). Eleven Member States had a ratio lower than 60% of GDP in 2001 including, for the first time, Germany (59.8% compared with 60.3% in 2000) and Spain (57.2£ compared with 60.4% in 2000).