In 2006, the government deficit of both the euro area (EA13) and the EU27 fell compared to 2005, while the government debt1 increased in absolute terms. In the euro area the government deficit decreased from 2.5% of GDP in 2005 to 1.5% in 2006, and in the EU27 it fell from 2.4% to 1.6%. In the euro area the government debt to GDP ratio fell from 70.3% at the end of 2005 to 68.6% at the end of 2006, and in the EU27 from 62.7% to 61.4%.

In 2006 the largest government deficits in percentage of GDP were recorded by Hungary (-9.2%), Italy (-4.4%), Portugal (-3.9%), Poland (-3.8%), and Slovakia (-3.7%). Ten Member States registered a government surplus in 2006: Denmark (+4.6%), Finland (+3.8%), Estonia (+3.6%), Bulgaria (+3.2%), Ireland (+2.9%), Sweden (+2.5%), Spain (+1.8%), Luxembourg (+0.7%), Netherlands (+0.6%) and Belgium (+0.4%). In all, 21 Member States recorded an improved government balance relative to GDP in 2006 compared to 2005, five a worsening, and one remained unchanged.
At the end of 2006, the lowest ratios of government debt to GDP were recorded in Estonia (4.0%), Luxembourg (6.6%), Latvia (10.6%) and Romania (12.4%). Ten Member States had government debt ratios higher than 60% of GDP in 2006: Italy (106.8%), Greece (95.3%), Belgium (88.2%), Germany (67.5%), Hungary (65.6%), Cyprus (65.2%), Portugal (64.8%), Malta (64.7%), France (64.2%) and Austria (61.7%).
In 2006, government expenditure in the euro area was equivalent to 47.2% of GDP, and government revenue to 45.6%. The figures for the EU27 were 46.6% and 45.0% respectively. In both zones between 2005 and 2006, the government expenditure ratio decreased slightly, while the government revenue ratio increased.