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Deficit Worsens and Debt Rises Again in the Euro Area

Deficit Worsens and Debt Rises Again in the Euro Area

Across Euro Area countries, the deficit increased to 3.2%, while the debt-to-GDP ratio reached 88.5%. Public finances in the euro area and the European Union showed renewed signs of deterioration in the third quarter of 2025, with a worsening budget deficit and a rise in the public debt ratio, according to data released by Eurostat.

On the one hand, the general government deficit, adjusted for seasonal effects, stood at 3.2% of Gross Domestic Product (GDP) both in the Euro Area and across the EU as a whole, reflecting an increase compared to the previous quarter. In the Euro Area, the ratio rose from 2.8% in the second quarter to 3.2%, once again exceeding the 3% reference threshold set out in European fiscal rules. Meanwhile, public debt as a percentage of GDP continued to grow.

At the end of the third quarter of 2025, the debt ratio reached 88.5% of GDP in the Euro Area, up from 88.2% in the previous quarter. In the European Union, debt increased from 81.9% to 82.1% of GDP over the same period. The highest deficits were recorded mainly in Eastern and Southern Europe: Romania (-7.3%), Poland (-5.8%), Belgium (-5.7%), Austria (-4.8%), and Hungary (-4.4%).

Source: O País

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