Euro area government deficit at 5.1% and EU at 4.6% of GDP. Belgium 5,6%!

Government debt at 95.4% and 87.9% respectively

In 2021, the government deficit of both the euro area and the EU decreased compared with 2020, as did the government debt. In the euro area the government deficit to GDP ratio shrunk from 7.0% in 2020 to 5.1% in 2021, and in the EU from 6.7% to 4.6%. In the euro area the government debt to GDP ratio decreased from 97.0% at the end of 2020 to 95.4% at the end of 2021, and in the EU from 89.8% to 87.9%.

In this release, Eurostat, the statistical office of the European Union, is providing government deficit and debt data for the years 2018-2021 based on figures reported by EU Member States in the second notification in 2022, for the application of the excessive deficit procedure (EDP). This notification is based on the ESA 2010 system of national accounts. This release also includes data on government expenditure and revenue.

In 2021, all Member States, except Denmark (+3.6%) and Luxembourg (+0.8%), reported a deficit. The highest deficits were recorded in Malta (-7.8%), Greece (-7.5%), Italy (-7.2%), Hungary and Romania (both -7.1%), Latvia (-7.0%), Spain (-6.9%) and France (-6.5%). Fifteen Member States had deficits higher than 3% of GDP.

At the end of 2021, the lowest ratios of government debt to GDP were recorded in Estonia (17.6%), Bulgaria (23.9%), Luxembourg (24.5%), Sweden (36.3%) and Denmark (36.6%). Fourteen Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (194.5%), Italy (150.3%), Portugal (125.5%), Spain (118.3%), France (112.8%), Belgium (109.2%) and Cyprus (101.0%).

In 2021, government expenditure in the euro area was equivalent to 52.3% of GDP and government revenue to 47.2%. The figures for the EU were 51.5% and 46.8%, respectively. In both zones, the government expenditure ratio decreased, while the government revenue ratio increased.