Eurozone Deficit Rises While Debt Declines

Eurostat reported that the government deficit-to-GDP ratio in the euro area increased from 3.5 percent in 2022 to 3.6 percent in 2023, while the overall government debt ratio decreased to 87.4 percent by the end of 2023, down from 89.5 percent in 2022. Similarly, in the EU, the deficit rose from 3.2 percent to 3.5 percent, while government debt decreased from 82.5 percent to 80.8 percent.

These statistics provide a snapshot of the financial health of EU countries and are used for monitoring compliance with the excessive deficit procedure.