Government net lending/borrowing in Eurozone

The euro area government deficit is the aggregate shortfall of member states' public accounts when spending exceeds revenue over the year. It is shown as a share of GDP and anchors the EU's common fiscal framework.

Eurostat publishes it as the net lending/borrowing under ESA 2010 and the Excessive Deficit Procedure, consolidating the balances of all general government subsectors. The outturn is set against GDP to give the ratio.

The aggregate deficit drives the area's borrowing needs and debt path, and is the pivotal variable for EU fiscal rules and the 3%-of-GDP threshold. It is closely tracked by the ECB, bond markets and rating agencies.

It is a low-frequency figure prone to revision with the national accounts and masks wide dispersion across members. The headline balance should be read apart from the primary balance, which excludes interest, and the cyclical component.