EU, Euro area fiscal deficit narrows to 3.1% of GDP in Q1

The seasonally adjusted general government deficit-to-GDP ratio stood at 3.1 per cent in both the euro area and the European Union (EU) in the first quarter (Q1) of 2026, according to the Eurostat, marking a slight easing from the previous quarter.The euro area deficit-to-GDP ratio declined from 3.2 per cent in the fourth quarter (Q4) of 2025, while the EU ratio decreased from 3.4 per cent in the previous quarter, revealed Eurostat’s latest data.

The euro area and the European Union each recorded a seasonally adjusted government deficit-to-GDP ratio of 3.1 per cent in the first quarter of 2026, down from 3.2 per cent and 3.4 per cent, respectively, in the previous quarter, Eurostat said.
The improvement came as both government revenue and expenditure, measured as shares of GDP, edged lower across the two regions.

In the euro area, government total revenue was 47.1 per cent of GDP in the first quarter of 2026, down from 47.3 per cent in the fourth quarter of 2025.

The government total expenditure stood at 50.2 per cent of GDP, compared with 50.4 per cent in the previous quarter.

The government’s total revenue at 46.6 per cent of GDP in the first quarter, compared with 46.7 per cent in the fourth quarter (Q4) of 2025. Government total expenditure was 49.8 per cent of GDP, down from 50.1 per cent in the previous quarter.

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