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Deficit burdened with €1.5bn in 2014

21/04/2015 13:31
Cyprus recorded the largest government deficit in the EU last year, according to data released by Eurostat.

The deficit is attributable to the accounting treatment of the support of €1.5 bn granted to the Cooperatives in 2013. This amount was charged to the accounts of 2014.

Without this treatment, the deficit is limited to 0.3% of GDP and is one of the smallest in Europe.

The Ministry, which uses a different methodology estimated that the fiscal balance would show a marginal surplus in 2014.

According to the figures, the government deficit reached 8.8% of GDP or €1544 mn from 4.9% of GDP in 2013 or €891 mn.

Eurostat defines the GDP of 2014 to €17.5 bn from €18.1 bn in 2013.

Government expenditure in 2014 amounted to 49.1% of GDP from 41.4% in 2013, while government revenues stood at 40.3% of GDP from 36.5% in 2013. The expenditure includes the support of €1.5 bn to the Cooperatives.

Cyprus is followed by Spain (-5.8%), Croatia and the United Kingdom (both -5.7%), and Slovenia (-4.9%). In Greece, the deficit fell to 3.5% of GDP from 12.3%.

Without taking into account the support of the Cooperatives, Cyprus has the best fiscal performance in 2014, after the surplus countries of Denmark, Germany, Estonia and Luxembourg.

Overall, twelve Member States had deficits higher than 3% of GDP.

In 2014, the government deficit of both the euro area and the EU28 decreased in absolute terms compared with 2013.

In the euro area the government deficit to GDP ratio decreased from 2.9% in 2013 to 2.4% in 2014, and in the EU28 from 3.2% to 2.9%.


As for the government debt of Cyprus in 2014, it increased to 107.5% of GDP (€18.8 bn) from 102.2% in 2013 (18.5 bn).

At the end of 2014, the lowest ratios of government debt to GDP were recorded in Estonia (10.6%), Luxembourg (23.6%) and Bulgaria (27.6%).

However, sixteen Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (177.1%), Italy (132.1%), Portugal (130.2 %), Ireland (109.7%), Cyprus (107.5%) and Belgium (106.5%).

In the euro area the government debt to GDP ratio increased from 90.9% at the end of 2013 to 91.9% at the end of 2014, and in the EU28 from 85.5% to 86.8%.