The budget deficit of Romania remains the largest in the EU / other European countries are on the trend of reducing the deficit
Romania is in the excessive deficit procedure of 2020 and will have to reduce the budget deficit, even if you will have to get money from dry stone – photo: Rosseforp / Imagebroker / Profimedia
The seasonal adjusted government deficit has registered a decrease in the first quarter of 2025, both in the European Union and in the euro area, according to data published Monday by Eurostat. Romania continues to have the highest level of deficit in the community block, of 7.5% of GDP, despite a slight reduction compared to the previous quarter.
In the first quarter of 2025, the deficit/GDP relations in the euro and EU area decreased compared to the fourth quarter of 2024.
Between January -March 2025, the seasonal adjusted government deficit was – 2.9% of GDP in the euro area, respectively – 2.9% in the EU, decreasing from -3.1% in both cases in the last quarter of 2024, according to Eurostat data.
How much the budgetary expenses increased
In the first quarter of 2025, the total public revenues in the euro area amounted to 46.6% of GDP. The decrease, compared with 46.7% in the fourth quarter of 2024, was determined by the increase of the total public revenues adjusted in absolute terms, which was exceeded by an increase of the nominal GDP.
In absolute terms, the total revenues adjusted seasonally in the euro area increased by about EUR 11 billion compared to the fourth quarter of 2024.
The total public spending in the euro area amounted to 49.5% of GDP, a decrease compared to the previous quarter, as a result of a modest increase in total public expenses seasonally adjusted by about 2 billion EUR, exceeded by the growth of nominal GDP.
In the EU, the total revenues of the government were 46.2% of GDP in the first quarter of 2025, unchanged from the previous quarter.
Total revenues adjusted seasonally in the EU increased by about 21 billion euros compared to the fourth quarter of 2024.
The total expenses of the government in the EU were 49.1% of GDP, a decrease compared to 49.5% of GDP in the previous quarter. The total seasonally adjusted expenses increased by about 5 billion euros compared to the previous quarter.
We remind that the authorities in Brussels have recently asked to Romania additional measures to correct the budget imbalances, in the context in which the country is in the excessive deficit procedure of 2020.
