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Eurozone Deficit Narrows to 2.9% in 2025
The Eurozone’s government deficit-to-GDP ratio fell to 2.9% in 2025, a slight improvement from the revised 3.0% in 2024. However, 11 member states still exceeded the EU’s 3% deficit ceiling, with Belgium (-5.2%) and France (-5.1%) recording the highest shortfalls. Among other major economies, Italy’s deficit narrowed to 3.1%, down from 3.4% in 2024, but remained above the EU limit, dashing hopes of exiting the bloc’s disciplinary procedure before its 2027 election. Meanwhile, Germany (-2.7%), Spain (-2.4%), and the Netherlands (-1.6%) stayed below the threshold. For the EU as a whole, the deficit ratio remained unchanged at 3.1%, with Romania (-7.9%) and Poland (-7.3%) posting the largest deficits.