Increasing the budget deficit in the European Union because of coronavirus

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The budget deficit and public debt increased rapidly in the European Union last year due to the Coronavirus pandemic.

The European Statistical Office (Eurostat) published budget deficit and public debt data for the European Union and the Eurozone for 2020.

Accordingly, the ratio of the budget deficit to GDP increased, which was 0.5% in 2019.

Although the European Union is made up of 27 countries, the proportion increased to 6.9% in 2020.

In the eurozone, the ratio of the budget deficit to GDP increased from 0.6% to 7.2% in the period in question.

Among the European Union member states, the country with the highest budget deficit in 2020 is Spain at 11%.

In addition to Malta 10.1%, Greece 9.7%, Italy 9.5%, Belgium 9.4%, 9.2% and Austria 8.9%.

While the European country with the lowest rate was Denmark at 1.1%, all but this country exceeded the 3% limit set by the Maastricht criteria.

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Public debt

The European Union’s public debt-to-GDP ratio, which was 77.5 percent in 2019, rose to 90.7 percent last year.

In the euro area, the ratio of public debt to GDP increased from 83.9% to 98% in the same period.

Among the European Union member states, the country with the highest public debt-to-GDP ratio in 2020 was recorded as Greece at 205.6 percent.

It is followed by Portugal with 133.6 percent, Spain with 120 percent, and the Greek Cypriot administration (Southern Cyprus) with 118.2 percent.

In addition to France, 115.7%, and Belgium, 114.1%.

Also, in the mentioned period, the countries with the lowest public debt-to-GDP ratio were Estonia at 18.2 percent.

Luxembourg is also 24.9%, and Bulgaria 25%.

Thus, 14 member states of the European Union have exceeded the 60 percent of public debt specified in the standards.