High Deficits in EU Countries

Budget deficits exceed the permitted 3-percent level in at least eight EU countries, including France and Spain, according to new statistics from Eurostat.

In the first quarter of 2024, the deficits stood at a total of 3.0 percent in the entire EU and 3.2 percent in the eurozone countries.

This is an improvement compared to 3.9 percent and 4.0 percent, respectively, in the last quarter of last year, but on the other hand, only marginally better than during the corresponding period a year ago.

Among others, France boasts a deficit of 5.6 percent and Spain of 3.2 percent. Germany is also in the danger zone with 2.8 percent.

Due to the coronavirus pandemic and Russia's war in Ukraine, the EU has allowed deviations from its otherwise tough deficit rules in recent years. However, the rules now apply as usual again, which means that several countries risk measures if they do not act to reduce their deficits and national debts. At the same time, the rules have recently been modernized to become more flexible.

Here are the budget surpluses – or deficits – in EU countries in the first quarter of 2024:

Denmark: 3.8

Ireland: 1.6

Portugal: 0.6

Lithuania: 0.1

Luxembourg: -0.1

Netherlands: -0.4

Sweden: -0.5

Croatia: -1

Malta: -1.4

Poland: -1.8

Latvia: -1.9