MORE THAN HALF OF EU COUNTRIES BROKE DEBT AND DEFICIT RULES IN 2024

Sun 26 October 2025:

Seventeen out of the European Union‘s 27 member countries exceeded the bloc’s self-imposed limits for budget deficits and public debt last year, according to data published on Tuesday by the EU’s statistics office Eurostat.

Twelve countries had a deficit of at least 3% of their total economic output, breaking the bloc’s limit on public expenditure. The highest deficits were recorded in Romania with 9.3%, followed by Poland with 6.5% and France with 5.8%.

Only six EU countries – namely Luxembourg, Greece, Cyprus, Denmark, Ireland and Portugal – earned more money than they spent last year and recorded a budget surplus.

Twelve EU countries exceeded the bloc’s limit on government debt with a debt ratio higher than 60% of gross domestic product (GDP). The countries with the highest debt burden are Greece (154.2%), Italy (134.9%) and France (113.2%).

Germany‘s debt ratio also exceeded the limit with 62.2% in 2024. The recorded deficit of 2.7% however stayed underneath the threshold.

The countries with the lowest ratios of government debt to GDP were Estonia with 23.5%, Bulgaria with 23.8%, and Luxembourg with 26.3%.

Seven EU countries – Belgium, Spain, France, Italy, Hungary, Austria and Finland, exceeded both the deficit and debt limits in 2024.

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EU’s Struggling Economy and the Ukraine War

Imagine Europe’s economic powerhouse grinding to a halt, its gears jammed by an unrelenting war just beyond its borders. As of October 2025, Russia’s full-scale invasion of Ukraine—now in its fourth brutal year—remains the epicenter of the EU’s woes, fueling a toxic mix of energy shocks, sanctions blowback, and skyrocketing defense costs that have shaved growth forecasts to a limp 0.9% for the eurozone this year.

The invasion triggered a savage supply shock—gas prices tripled in 2022, hammering households and factories, while EU sanctions on Russia (now in the 18th package) have disrupted €100 billion in annual trade, slashing exports to Moscow and Kyiv alike.

Beyond borders, the conflict amplifies global headwinds—U.S. tariffs loom, China’s cheap exports flood markets, and an aging EU (debt over 80% GDP) strains to fund green shifts amid refugee influxes and supply chain snarls.

Eastern neighbors like Poland bear the brunt, hosting millions of Ukrainians while NATO’s 23 EU members scramble to hit 2% GDP defense spending, risking a “war economy” pivot that diverts from consumer goods.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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