Cyprus budget deficit one of highest in EU

According to Eurostat, the Statistical Office of the European Communities, Cyprus had one of the highest deficits in the EU in 2004, based on the data on government deficit and debt for 2004 transmitted by the 25 Member States to the European Commission in recent weeks.

Greece was highest with a deficit of 6.1% of GDP, Malta recorded 5.2%, Poland 4.8%, Hungary 4.5% and Cyprus 4.2%.

The government of Cyprus is aiming for a budget deficit of 2.9% of GDP in 2004.

In addition, nine Member States had a government debt ratio higher than the Maastricht criterion of 60% of GDP in 2004, the same as in 2003: Greece (110.5%), Italy (105.8%), Belgium (95.6%), Malta (75.0%), Cyprus (71.9%), Germany (66.0%), France (65.6%), Austria (65.2%), and Portugal (61.9%).

The combined budget deficit of the euro-zone and the EU25 improved in 2004 compared to 2003, while government debt increased.

In the eurozone, government budget deficit decreased from 2.8% of GDP in 2003 to 2.7% in 2004, and in the EU25 it fell from 2.9% in 2003 to 2.6% in 2004.

Debt rose however: in the eurozone the government debt to GDP ratio rose from 70.8% in 2003 to 71.3% in 2004, and in the EU25 from 63.3% to 63.8%.