European Economy. Public Finances in EMU-2004. European Economy 2004.3

Abstract

An increasing variety of budgetary positions, with challenging overall developmentsActual deficits continued to increase in 2003 throughoutthe EU, reflecting the protracted slowdown in growthand the working of automatic stabilisers. In the euroarea, the deficit rose from 2.3 % of GDP in 2002 to 2.7 %of GDP in 2003. If all 25 countries which are membersof the EU as of 1 May 2004 are taken into account, thedeficit has increased from 2.1 to 2.7 % of GDP. Cycli-cally adjusted developments have started to evolve morefavourably, improving from 2.4 % of GDP in 2002 to2.1 % in 2003. However, this reflects sizeable one-offmeasures in several countries.