The Real State of Government Deficits In The Eurozone

Philippe Petit

Photo: AP Images

Governments operate on deficit budgets all the time, looking for returns in the long run. But when that deficit becomes structural, and economic growth can’t keep pace, federal governments need to rein in spending. German chancellor Angela Merkel, and French president Nicolas Sarkozy, are pushing for a balanced budget amendment in the eurozone by 2012.

We drew on a report from Societe Generale and put together current budget balance to GDP ratios, and debt to GDP ratios, along with projections for both, to provide a debt and deficit profile for the eurozone.

Austria

Budget balance to GDP ratio 2010: -4.6%

Budget balance to GDP ratio 2015: -2.9%

Debt to GDP ratio 2010: 72.3%

Debt to GDP ratio 2015: 75.6%

Source: Societe Generale

Belgium

Budget balance to GDP ratio 2010: -4.1%

Budget balance to GDP ratio 2015: -2.9%

Debt to GDP ratio 2010: 96.8%

Debt to GDP ratio 2015: 97.2%

Source: Societe Generale

Cyprus

Budget balance to GDP ratio 2010: -5.3%

Budget balance to GDP ratio 2015: -4.6%

Debt to GDP ratio 2010: 60.8%

Debt to GDP ratio 2015: 70.3%

Source: Societe Generale

Estonia

Budget balance to GDP ratio 2010: 0.1%

Budget balance to GDP ratio 2015: -1.0%

Debt to GDP ratio 2010: 6.6%

Debt to GDP ratio 2015: 8.6%

Source: Societe Generale

Finland

Budget balance to GDP ratio 2010: -2.5%

Budget balance to GDP ratio 2015: -0.6%

Debt to GDP ratio 2010: 48.4%

Debt to GDP ratio 2015: 42.1%

Source: Societe Generale

France

Budget balance to GDP ratio 2010: -7.1%

Budget balance to GDP ratio 2015: -1.0%

Debt to GDP ratio 2010: 82.3%

Debt to GDP ratio 2015: 85.3%

Source: Societe Generale

Germany

Budget balance to GDP ratio 2010: -3.3%

Budget balance to GDP ratio 2015: -0.7%

Debt to GDP ratio 2010: 83.2%

Debt to GDP ratio 2015: 78.3%

Source: Societe Generale

Greece

Budget balance to GDP ratio 2010: -10.5%

Budget balance to GDP ratio 2015: -1.8%

Debt to GDP ratio 2010: 142.8%

Debt to GDP ratio 2015: 174.1%

Source: Societe Generale

Italy

Budget balance to GDP ratio 2010: -4.6%

Budget balance to GDP ratio 2015: -2.7%

Debt to GDP ratio 2010: 119.0%

Debt to GDP ratio 2015: 115.1%

Source: Societe Generale

Ireland

Budget balance to GDP ratio 2010: -12.4%

Budget balance to GDP ratio 2015: -4.3%

Debt to GDP ratio 2010: 96.2%

Debt to GDP ratio 2015: 122.9%

Source: Societe Generale

Luxembourg

Budget balance to GDP ratio 2010: -1.7%

Budget balance to GDP ratio 2015: -1.1%

Debt to GDP ratio 2010: 18.4%

Debt to GDP ratio 2015: 19.4%

Source: Societe Generale

Malta

Budget balance to GDP ratio 2010: -3.6%

Budget balance to GDP ratio 2015: -3.0%

Debt to GDP ratio 2010: 68.0%

Debt to GDP ratio 2015: 69.8%

Source: Societe Generale

Netherlands

Budget balance to GDP ratio 2010: -5.4%

Budget balance to GDP ratio 2015: -2.3%

Debt to GDP ratio 2010: 62.7%

Debt to GDP ratio 2015: 68.7%

Source: Societe Generale

Portugal

Budget balance to GDP ratio 2010: -9.1%

Budget balance to GDP ratio 2015: -3.8%

Debt to GDP ratio 2010: 93.0%

Debt to GDP ratio 2015: 115.8%

Source: Societe Generale

Spain

Budget balance to GDP ratio 2010: -9.2%

Budget balance to GDP ratio 2015: -2.5%

Debt to GDP ratio 2010: 60.1%

Debt to GDP ratio 2015: 69.5%

Source: Societe Generale

Slovakia

Budget balance to GDP ratio 2010: -7.9%

Budget balance to GDP ratio 2015: -5.7%

Debt to GDP ratio 2010: 41.0%

Debt to GDP ratio 2015: 60.0%

Source: Societe Generale

Euro-area

Budget balance to GDP ratio 2010: -6.2%

Budget balance to GDP ratio 2015: -1.8%

Debt to GDP ratio 2010: 85.6%

Debt to GDP ratio 2015: 86.4%

Source: Societe Generale

Slovenia

Budget balance to GDP ratio 2010: -5.6%

Budget balance to GDP ratio 2015: -5.6%

Debt to GDP ratio 2010: 38.0%

Debt to GDP ratio 2015: 57.4%

Source: Societe Generale

Now here are the countries with the most balance sheet risk...

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