In the first quarter of 2025, the seasonally adjusted general government deficit stood at 2.9% of GDP in both the euro area (EA20) and the European Union, according to the latest data released by Eurostat. This marks a slight improvement from the previous quarter, when deficits reached 3.2% in the euro area and 3.3% in the EU. In the euro area, total government revenue was 46.6% of GDP, down marginally from 46.7% in Q4 2024. Although revenue rose in absolute terms by approximately €11 billion, this was outpaced by nominal GDP growth. Total expenditure also declined as a share of GDP to 49.5%, compared to 49.9% in the prior quarter. For the EU as a whole, revenue remained steady at 46.2% of GDP, with a quarterly increase of €21 billion in absolute terms. Meanwhile, expenditure declined to 49.1% of GDP, even though it rose by €5 billion in absolute terms. National Variations Among EU Member States, deficits varied significantly: • Poland posted a deficit of -5.1% of GDP, an improvement from -7.6% in Q4 2024. • France remained among the highest with a deficit of -5.6%. • Belgium’s deficit widened to -5.5%, while Romania stood at -7.5%. • Ireland recorded a notable surplus of 2.3%, following a volatile 2024. • Greece registered a strong fiscal performance with a 4.2% surplus, continuing its recent trend of improvement. The improvements in Q1 2025 reflect a continued normalization of public finances across much of the EU, following earlier periods of elevated deficits due to pandemic- and energy-related support measures. While some Member States such as Greece, Cyprus, and Ireland have transitioned to budget surpluses, others—including Poland, Hungary, and Romania—remain under pressure to reduce their budget imbalances. The figures are based on the European System of Accounts (ESA 2010) and follow the Excessive Deficit Procedure framework. All Q1 2025 figures are provisional and subject to revision. Final annual government finance statistics will be verified by Eurostat ahead of the October 2025 Excessive Deficit Procedure notification.