In the second quarter of 2026, the seasonally adjusted general government deficit-to-GDP ratio stood at 3.3% in the euro area and at 3.5% in the European Union, according to data released by Eurostat, the statistical office of the European Union. The euro area deficit-to-GDP ratio increased slightly compared to 3.2% in the first quarter of 2026, while the EU deficit-to-GDP ratio increased compared to 3.1% in the previous quarter.
Government total revenue in the euro area amounted to 46.8% of GDP in the second quarter of 2026. The decrease compared with 46.9% in the first quarter of 2026 was mainly due to an increase in seasonally adjusted government total revenue in absolute terms by around €21 billion being outweighed by an increase in nominal GDP. Government total expenditure in the euro area stood at 50.1% of GDP, marking an increase compared with the previous quarter's 50.0% of GDP due to an increase in seasonally adjusted total government expenditure by around €28 billion.
In the EU, government total revenue was 46.3% of GDP in the second quarter of 2026, with the ratio decreasing compared to 46.4% in the first quarter of 2026. This occurred as an increase in seasonally adjusted total revenue in the EU by around €25 billion was similarly outweighed by an increase in nominal GDP. Government total expenditure in the EU reached 49.8% of GDP, an increase compared with 49.6% of GDP in the previous quarter, driven by seasonally adjusted total expenditure increasing by around €42 billion compared with the previous quarter.
Individual member states reported varying shifts in their seasonally adjusted general government surplus and deficit balances during the second quarter of 2026. Belgium registered a deficit of 5.3% of GDP, compared with 5.0% in the first quarter. Bulgaria recorded a deficit of 5.3% of GDP, shifting from 7.9% previously. Czechia saw its deficit widen to 3.3% of GDP from 2.6%. Denmark recorded a surplus of 2.7% of GDP, compared with 3.1% in the first quarter. Germany posted a deficit of 4.1% of GDP, shifting from 3.8% in the preceding period. Estonia reported a deficit of 3.2% of GDP, compared with 1.6% in the first quarter, while Ireland maintained a surplus of 1.9% of GDP, down from 2.2%. Greece registered a surplus of 2.2% of GDP, up from 1.8%, and Spain recorded a deficit of 2.2% of GDP, unchanged from the first quarter.
France reported a deficit of 5.1% of GDP, matching the previous quarter's figure. Croatia's deficit widened to 4.0% of GDP from 3.4%, and Italy's deficit rose to 3.2% of GDP from 2.7%. Cyprus posted a surplus of 3.3% of GDP, compared with 3.8% in the first quarter. Latvia recorded a deficit of 2.9% of GDP, up from 1.5%, while Lithuania posted a deficit of 3.2% of GDP, compared with 0.8% in the previous period. Luxembourg's deficit narrowed to 0.2% of GDP from 1.0%. Hungary's deficit widened to 7.2% of GDP from 6.8%, and Malta recorded a deficit of 4.0% of GDP, compared with 3.9% previously. The Netherlands posted a deficit of 2.0% of GDP, up slightly from 1.9%, and Austria recorded a deficit of 3.4% of GDP, compared with 3.3% in the first quarter. Poland reported a deficit of 5.9% of GDP, compared with 5.2% in the previous period, while Portugal maintained a surplus of 0.8% of GDP, up from 0.7%. Romania experienced a wider deficit of 9.2% of GDP, compared with 5.5% in the first quarter. Slovenia recorded a deficit of 3.2% of GDP, compared with 3.3%, Slovakia posted a deficit of 2.6% of GDP, down from 3.0%, and Finland registered a deficit of 3.3% of GDP, unchanged from the first quarter. Sweden saw its deficit widen to 2.0% of GDP from 1.1%, and Iceland reported a deficit of 2.7% of GDP, compared with 2.9% in the preceding quarter.
