Drop in EU government deficit, but rise in debt

In 2013, the government deficit of both the euro area and the EU decreased compared with 2012, while the government debt rose in both zones. In the euro area , the government deficit to GDP ratio decreased from 3.7% in 2012 to 3.0% in 2013, and in the EU from 3.9% to 3.3%. In the euro area, the government debt to GDP ratio increased from 90.7% at the end of 2012 to 92.6% at the end of 2013, and in the EU from 85.2% to 87.1%, according to figures released here Wednesday by Eurostat, the EU statistical office. In 2013, Luxembourg registered a government surplus, Germany was close to balance, and the lowest government deficits in percentage of GDP were recorded in Estonia, Denmark, Latvia and Sweden. Ten EU Member States had deficits higher than 3% of GDP. At the end of 2013, the lowest ratios of government debt to GDP were recorded in Estonia (10.0%), Bulgaria (18.9%), Luxembourg (23.1%), Latvia (38.1%), Romania (38.4%), Lithuania (39.4%) and Sweden (40.6%). Sixteen EU Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (175.1%), Italy (132.6%), Portugal (129.0 %), Ireland (123.7%), Cyprus (111.7%) and Belgium (101.5%). In 2013, government expenditure in the euro area was equivalent to 49.8% of GDP and government revenue to 46.8%. The figures for the EU were 49.1% and 45.7% respectively. In both zones, the government expenditure ratio decreased and the government revenue ratio increased between 2012 and 2013.