EU's public debt and budget deficit expected to rise

The European Union's (EU) debt and budget deficit indicators are projected to gradually increase in the coming years, particularly in some member states, according to European Commissioner Valdis Dombrovskis, who presented the EU's autumn economic forecast, Report informs.

Dombrovskis explained that the sharp rise in defense spending - not fully reflected in the report - along with major uncertainties in the global economy, are key factors driving this trend.

Forecasts show that in 2025, the budget deficit will exceed 3% of GDP in 11 EU member states: Belgium, Germany, France, Latvia, Malta, Austria, Slovakia, Finland, Hungary, Poland, and Romania.

In Italy, however, the deficit is expected to fall to 3% of GDP this year and continue declining in the following years.

"Overall, regarding public finances, after falling to 3.1% of GDP in 2024, the EU's budget deficit is expected to rise to 3.3% in 2025, and to 3.4% in both 2026 and 2027," the commissioner stated.

According to the forecast, EU public debt will increase from 82% of GDP in 2024 to 85% by 2027.