(Brussels, DTT-NET.COM)-According to EU agency for statistics (Eurostat) Euro-zone and EU-25 government deficit fall to 2.4% and 2.3% of GDP respectively.

In 2005 the government deficit1 of the euro-zone2 and of the EU25 fell compared to 2004 while the government debt1 increased. In the euro-zone the government deficit decreased from 2.8% of GDP in 20043 to 2.4% in 2005, and in the EU25 it fell from 2.6% to 2.3%.

In the euro-zone the government debt to GDP ratio rose from 69.8% in 2004 to 70.8% in 2005, and in the EU25 from 62.4% to 63.4%.
For Belgium and Greece, Eurostat has to undertake further examination of deficit and debt data.

In 2005 the largest government deficits in percentage of GDP were recorded by Hungary (-6.1%), Portugal (-6.0%), Greece (-4.5%) and Italy (-4.1%).

Another three Member States recorded a government deficit of more than 3% of GDP: the United Kingdom (-3.6%), Germany (-3.3%) and Malta (-3.3%). Eight Member States registered a government surplus in 2005: Denmark (+4.9%), Sweden (+2.9%), Finland (+2.6%), Estonia (+1.6%), Spain (+1.1%), Ireland (+1.0%), Latvia (+0.2%) and Belgium (+0.1%).

In all, eighteen Member States recorded an improved government balance relative to GDP, while seven Member States registered a worsening.

In 2005, the lowest ratios of government debt to GDP were recorded in Estonia (4.8%), Luxembourg (6.2%), Latvia (11.9%) and Lithuania (18.7%). Nine Member States had a government debt ratio higher than 60% of GDP in 2005: Greece (107.5%), Italy (106.4%), Belgium (93.3%), Malta (74.7%), Cyprus (70.3%), Germany (67.7%), France (66.8%), Portugal (63.9%) and Austria (62.9%).

In 2005, government expenditure4 in the euro-zone was equivalent to 47.5% of GDP, and government revenue4 to 45.1%. The figures for the EU25 were 47.2% and 44.9% respectively. Between 2004 and 2005 the government expenditure ratio in the euro-zone stayed the same whereas the government revenue ratio increased.

Reservations on reported data

Belgium: Eurostat considers that the assumption by government in 2005 of 7400 million euro of the debt of the railway company SNCB must result, according to ESA95 rules, in a capital transfer from government to SNCB, with an impact on the government deficit by the same amount (equal to 2.5% of GDP). However, the Belgian statistical authorities have informed Eurostat of the intention of the Belgian government to introduce legislation to retroactively annul this operation. The accounting consequences of this must be clarified before the next EDP notification in October 2006.

Greece: Despite the recent improvement in the statistical processes and good co-operation between Eurostat and the national statistical authorities of Greece, issues remain related to the Greek government accounts of a structural and systemic nature.

Eurostat has withdrawn the reservations in the September 2005 notification (Eurostat News Release 120/2005 of 26 September 2005) concerning the Czech Republic and Portugal.

Amendments to reported data

France: Eurostat has amended the deficit data notified by France for the year 2005, due to a reclassification as a capital transfer of a capital injection in the railway company SNCF, by an amount of 250 million euro (0.01% of GDP). There is no change in the reported debt figures.

United Kingdom: Eurostat has amended the data notified by the United Kingdom for years 2002 to 2005 for consistency of recording of UMTS licence proceeds. This leads to an increase in the government deficits for 2002, 2004 and 2005 (as well as for financial years 2002/03, 2004/05 and 2005/06) by GBP 1 045 million (0.1% of GDP) and for 2003 (financial year 2003/04) by GBP 1 044 million (0.1% of GDP). There is no change in the reported debt figures.

 

 

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