Public Finances in EMU-2004

Abstract

An increasing variety of budgetary positions, with challenging overall developments Actual deficits continued to increase in 2003 throughout the EU, reflecting the protracted slowdown in growth and the working of automatic stabilisers. In the euro area, the deficit rose from 2.3% of GDP in 2002 to 2.7% of GDP in 2003. If all 25 countries which are members of the EU as of 1 May 2004 are taken into account, the deficit has increased from 2.1% to 2.7% of GDP. Cyclically-adjusted developments have started to evolve more favourably, improving from 2.4% of GDP in 2002 to 2.1% in 2003. However, this reflects sizeable one-off measures in several countries.