Euro area government deficit rises to 3.3 per cent of GDP
The EU deficit also widened, reaching 3.5 per cent of GDP, while government spending increased relative to economic output in both areas.
Government deficits widened in both the euro area and the EU during 2026’s second quarter, Eurostat said. On a seasonally adjusted basis, the deficit reached 3.3 per cent of GDP across the 21-country euro area, compared with 3.2 per cent a quarter earlier. The EU figure rose to 3.5 per cent from 3.1 per cent.
Euro area government spending increased by around €28 billion, bringing expenditure to 50.1 per cent of GDP from 50.0 per cent. Revenue grew by around €21 billion, but its share of GDP slipped to 46.8 per cent from 46.9 per cent because nominal economic output increased more.
Across the EU, expenditure rose by around €42 billion and accounted for 49.8 per cent of GDP, against 49.6 per cent in the preceding quarter. Revenue increased by around €25 billion, yet fell relative to GDP, to 46.3 per cent from 46.4 per cent, as nominal output growth outweighed the revenue increase.
Eurostat marked all quarterly government finance figures for the first two quarters of 2026 as provisional. The EU and euro area aggregates use national estimates and are adjusted for seasonal and calendar effects.
