In 2008, the government deficit and government debt of both the euro area (EA16) and the EU27 increased compared with 2007. In the euro area the government deficit to GDP ratio increased from 0.6% in 2007 to 2.0% in 2008, and in the EU27 it increased from 0.8% to 2.3%. In the euro area the government debt to GDP ratio increased from 66.0% at the end of 2007 to 69.3% at the end of 2008, and in the EU27 from 58.7% to 61.5%.

In 2008 the largest government deficits in percentage of GDP were recorded by Greece (-7.7%), Ireland (-7.2%), Romania (-5.5%), the United Kingdom (-5.0%), Malta (-4.7%), Spain (-4.1%), Latvia (-4.1%), Hungary (-3.8%), Poland (-3.6%), France (-3.4%) and Lithuania (-3.2%). Eight Member States registered a government surplus in 2008: Finland (+4.5%), Denmark (+3.4%), Luxembourg (+2.5%), Sweden (+2.5%), Bulgaria (+1.8%), Cyprus (+0.9%), the Netherlands (+0.7%) and Germany (0.0%). In all, four Member States recorded an improved government balance relative to GDP in 2008 compared with 2007 and 23 a worsening.

At the end of 2008, the lowest ratios of government debt to GDP were recorded in Estonia (4.6%), Luxembourg (13.5%), Romania (13.6%), Bulgaria (14.1%), and Lithuania (15.6%). Nine Member States had government debt ratios higher than 60% of GDP in 2008: Italy (105.8%), Greece (99.2%), Belgium (89.8%), Hungary (72.9%), France (67.4%), Portugal (66.3%), Germany (65.9%), Malta (63.8%) and Austria (62.6%).

In 2008, government expenditure in the euro area was equivalent to 46.8% of GDP and government revenue to 44.8%. The figures for the EU27 were 46.8% and 44.6% respectively. In both zones, the government expenditure ratio increased between 2007 and 2008, while the government revenue ratio decreased.