The general government deficit in the euro area, EA20, (eurozone countries excluding Bulgaria, which joined the currency union at the beginning of 2026) decreased to 2.9% of gross domestic product (GDP) in 2025, compared to 3% a year earlier, according to the latest data from the European statistical office Eurostat. The deficit in the euro area has declined for the third consecutive year. For the European Union as a whole, the indicator remained unchanged at 3.1% of GDP.
The published data cover the period 2022–2025 and are part of the first 2026 notification by Member States under the Excessive Deficit Procedure (EDP), prepared on the basis of the European System of National and Regional Accounts (ESA 2010). The release also includes indicators for government expenditure and revenue. According to the Maastricht criteria, the budget deficit of Member States must not exceed 3% of GDP.
In 2025, almost all Member States reported a budget deficit, with the exception of Cyprus, Denmark, Ireland, Greece, and Portugal, which recorded a surplus. The largest deficits were reported in Romania (7.9% of GDP), Poland (7.3%), Belgium (5.2%), and France (5.1%). A total of 11 Member States had a deficit equal to or exceeding the reference value of 3% of GDP.
General government expenditure in 2025 amounted to 49.8% of GDP in the euro area and 49.5% in the EU, while revenues were 46.9% and 46.4% respectively. Both indicators increased compared to the previous year.
Against this background, Bulgaria reported a deterioration in its budget position. The deficit rose to 3.5% of GDP in 2025, up from 3.0% a year earlier, reaching EUR 4.1 billion in nominal terms. The economy continued to grow, with GDP increasing to EUR 116.0 billion compared to EUR 104.8 billion in 2024.
Government expenditure increased to 41.7% of GDP, up from 39.2% a year earlier, while revenues rose to 38.1% of GDP. Government debt also increased significantly - to EUR 34.6 billion by the end of 2025, representing 29.9% of GDP, compared to 23.8% the previous year.
