Brussels, 24/10/2008 (Agence Europe) - The government deficit fell in absolute terms in 2007, compared with 2006 in both the euro area and the EU27, while government debt has risen, Eurostat said in a press release issued on Wednesday 22 October. In relative terms, the government deficit decreased from 1.3% of GDP in 2006 to 0.6% in 2007 in the euro area, and, in the EU27, it fell from 1.4% to 0.9%. In the euro area, the government debt to GDP ratio fell from 68.5% at the end of 2006 to 66.3% at the end of 2007, and in the EU27 from 61.3% to 58.7%.
Compared with 2006, 16 member states recorded an improved government balance relative to GDP in 2007 compared with 2006, and 11 a worsening. The largest government deficits in percentage of GDP were recorded by Hungary (5.0%), Greece (3.5%), the United Kingdom (2.8%), France (2.7%), Portugal (2.6%) and Romania (2.6%). 12 member states registered a government surplus in 2007: Finland (5.3%), Denmark (4.9%), Sweden (3.6%), Cyprus (3.5%), Luxembourg (3.2%), Estonia (2.7%), Spain (2.2%), Slovenia (0.5%), Netherlands (0.3%), Ireland (0.2%), Bulgaria (0.1%) and Latvia (0.1%).
At the end of 2007, the lowest ratios of government debt to GDP were recorded in Estonia (3.5%), Luxembourg (7.0%), Latvia (9.5%) and Romania (12.9%). Eight member states had government debt ratios higher than 60% of GDP in 2007: Italy (104.1%), Greece (94.8%), Belgium (83.9%), Hungary (65.8%), Germany (65.1%), France (63.9%), Portugal (63.6%) and Malta (62.2%). (A.B./transl.rt)