Eurozone budget deficit falls to 3.7%

The Eurozone’s budget deficit fell to 3.7 per cent of gross domestic product (GDP) last year but the region’s debt levels continued to rise. The region’s combined deficit stood at 4.2 per cent in 2011, the EU’s statistics office Eurostat said, confirming figures published in April. The 17-member currency bloc’s debt level climbed to 90.6 per cent of GDP last year, well above the 60 per cent that is required under the rules for euro members states. The region’s combined government debt-to-GDP ratio stood at 80 per cent in 2009. Nations at the center of the euro debt crisis recorded the highest deficit levels. While Spain reported a budget deficit last year of 10.6 per cent and a debt ratio of 86 per cent, Greece had a deficit of 9 per cent and debts totalling 156.9 per cent of GDP, Eurostat said. Eurozone states are required to have a deficit of 3 per cent of GDP. The currency bloc’s budget deficit stood at 6.4 per cent in 2009 as the region fell deeper into recession.