The EU Stability and Growth Pact stipulates that Eurozone members must adhere to certain rules and ensure budgetary discipline. The annual government deficit – also known as net borrowing - is not to exceed 3% of the gross domestic product (GDP). In 2022, most of the 27 EU member states managed to stay below this limit. Germany recorded a government deficit of 2.5% of GDP.
The level of government debt however increased: 15 of the 27 countries have a government debt which exceeds the agreed 60% of GDP limit. Greece’s government debt amounted to 172.6% in 2022, representing the highest ratio among all euro countries. Italy (141.7%) and Portugal (112.4%) were also at the top end of the scale. Germany’s government debt amounted to 66.1% of GDP, which is clearly above the 60% GDP limit again.
Destatis is responsible for reporting Germany’s budget data to Eurostat as part of the EU Stability and Growth Pact. More background information and data on this topic can be found in the corresponding section of the main Destatis website.