Cyprus is the only EU country with a deficit above 3% GDP

EPA-EFE//STEPHANIE LECOCQ

Italian Minister of Economy and Finance, Giovanni Tria (R) and Cyprus Finance Minister Harris Georgiades (L) during Eurogroup Finance Ministers' meeting in Brussels.

Cyprus is the only EU country with a deficit above 3% GDP


Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

The average budget deficit in the EU stood at 0.6% of GDP in 2018, with Cyprus as the only member of the bloc who broke the European Union’s 3% target for a maximum budget deficit.

Cyprus had the highest deficit ratio in the EU last year at 4.8% of GDP and fourth widest government debt ratio at 102.5% of GDP. The country’s debt is estimated at €21.258 billion and its government deficit now stands at -€990 million, with revenues at 39.9% and overall expenditures at 44.7% of GDP.

The highest debt in the bloc is held by Greece at more than 181% relative to its economic output of €334.5 billion. The government budget surplus is currently €1.99 billion, revenues are at 47.8%, and expenditures at 46.7% of GDP.

Romania’s deficit is also significant, at 3% to GDP. More troubling are Italy’s numbers, whose urosceptic government has embarked on free-spending plans with little impact on growth, has seen its debt grow to 132.2% of its output in 2018 from 131.4% in the previous year.

In 2018, Luxembourg (+2.4%), Bulgaria and Malta (both +2.0%), Germany (+1.7%), the Netherlands (+1.5%), Greece (+1.1%), Czechia and Sweden (both +0.9%), Lithuania and Slovenia (both +0.7%), Denmark (+0.5%), Croatia (+0.2%) and Austria (+0.1%) registered a government surplus. Ireland reported a government balance.

In the Eurozone, the government deficit to GDP ratio fell from 1.0% in 2017 to 0.5% in 2018, and in the EU-28 from 1.0% to 0.6%. The government debt to GDP ratio in the Eurozone declined from 87.1% at the end of 2017 to 85.1% in 2018, and in the EU-28 from 81.7% to 80.0%, according to Eurostat, the EU’s statistics office.

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+