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22.04.202609:27:18UTC+00Eurozone Deficit Narrows to 2.9% in 2025

The Eurozone’s government deficit-to-GDP ratio declined to 2.9% in 2025, a modest improvement from the revised 3.0% recorded in 2024. Nonetheless, 11 member states continued to breach the EU’s 3% deficit ceiling, with Belgium (-5.2%) and France (-5.1%) registering the deepest shortfalls. Among the larger economies, Italy reduced its deficit to 3.1% from 3.4% in 2024, but it still remained above the EU threshold, undermining expectations that the country could exit the bloc’s disciplinary procedure before its 2027 election. By contrast, Germany (-2.7%), Spain (-2.4%), and the Netherlands (-1.6%) all remained comfortably below the 3% limit. At the EU level, the aggregate deficit ratio was unchanged at 3.1%, with Romania (-7.9%) and Poland (-7.3%) recording the largest gaps.

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