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Europe Daily Bulletin No. 9292
Contents Publication in full By article 24 / 32
GENERAL NEWS / (eu) eu/economy

Fall in government deficit but rise in Euro zone and EU25 debt

Luxembourg, 23/10/2006 (Agence Europe) - According to data published by Eurostat on 23 October In 2005 the government deficit1 of both the Euro area and the EU25 fell compared to 2004, while the government debt1 increased. In the Euro area the government deficit decreased from 2.8% of GDP in 20043 to 2.4% in 2005, and in the EU25 it fell from 2.7% to 2.3%. In the Euro area the government debt to GDP ratio rose from 69.8% in 2004 to 70.8% in 2005, and in the EU25 from 62.4% to 63.2%. In 2005 the largest government deficits in percentage of GDP were recorded by Hungary (-6.5%), Portugal (-6.0%), Greece (-5.2%) and Italy (-4.1%). Another five Member States also recorded a government deficit of more than 3% of GDP: the Czech Republic (-3.6%), the United Kingdom (-3.3%), Germany (-3.2%), Malta (-3.2%) and Slovakia (-3.1%). Seven Member States registered a government surplus in 2005: Denmark (+4.9%), Sweden (+3.0%), Finland (+2.7%), Estonia (+2.3%), Spain (+1.1%), Ireland (+1.1%) and Latvia (+0.1%). In all, fifteen Member States recorded an improved government balance relative to GDP in 2005 compared to 2004, while nine Member States registered a worsening and in one case it stayed unchanged. In 2005, the lowest ratios of government debt to GDP were recorded in Estonia (4.5%), Luxembourg (6.0%), Latvia (12.1%) and Lithuania (18.7%). Nine Member States had government debt ratios higher than 60% of GDP in 2005: Greece (107.5%), Italy (106.6%), Belgium (93.2%), Malta (74.2%), Cyprus (69.2%), Germany (67.9%), France (66.6%), Portugal (64.0%) and Austria (63.4%). (ol)

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