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.