The seasonally adjusted government deficit decreased, both in the European Union and in the euro area, in the first quarter of this year, compared to the last quarter of last year, a similar trend being recorded including in Romania, the country with the largest deficit in the EU, according to data published on Monday by Eurostat.

In the European Union, the seasonally adjusted government deficit decreased from 3.3% of GDP in Q4 2024, to 2.9% of GDP in Q1 2025. In Romania, the deficit decreased from 9.6% of GDP in Q4 2024, to 7.5% of GDP in Q1 2025, according to Agerpres.

Provisional Eurostat data show that the top of member states with the highest government deficits is led by Romania, with a deficit of 7.5% of GDP, followed by France, 5.6% of GDP, and Belgium, 5.5% of GDP.

At the opposite end is Cyprus, a country that in the first quarter of this year recorded a government surplus of 5.6% of GDP, followed by Greece, with a surplus of 4.2% of GDP.

Eurostat also published data on the public debt of member states in the first quarter of this year on Monday. According to these data, the debt-to-GDP ratio increased in the euro area to 88%, from 87.4% in the last quarter of last year, and in the EU it increased from 81% to 81.8%.

Among the Member States, however, 16 Member States recorded an increase in the debt-to-GDP ratio from one quarter to the next, with the largest increases recorded in Austria and Slovakia (both with an increase of 3.5 percentage points), Slovenia (2.9 percentage points) and Italy (2.5 percentage points). In Romania, the debt-to-GDP ratio increased by one percentage point from one quarter to the next.

Compared to the situation in the first quarter of last year, 13 Member States recorded an increase in the debt-to-GDP ratio, with the largest increases recorded in Poland (6.1 percentage points), Finland (5.1 percentage points), Austria and Romania (both with an increase of 4.1 percentage points).

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