2014.04.2311:18:00UTC+00Eurozone Govt. Deficit Shrinks In 2013; Debt Rises

Euro area's government deficit shrunk last year to match the EU target, while public debt rose and remained above the official ceiling, figures from the Eurostat showed Wednesday.

The shrunken government deficits suggest that euro area might be leaving behind the worst troubles of the financial crisis, while climbing debt indicates the cost of the crisis.

The government deficit of the 18-nation economy narrowed to 3 percent of the gross domestic product from 3.7 percent in 2012. The figure matched the ceiling prescribed by the Maastricht Treaty.

Government expenditure was largely unchanged at 49.8 percent of GDP versus 49.9 percent in the previous year. Revenue rose to 46.8 percent of GDP from 46.2 percent.

However, the government debt continued to rise with the ratio to GDP climbing to 92.6 percent from 90.7 percent. That is highest than the Maastricht limit of 60 percent.

In EU 28, the government deficit fell to 3.3 percent from 3.9 percent. Expenditure eased to 49.1 percent from 49.4 percent, while revenue rose to 45.7 percent from 45.4 percent. Public debt rose to 87.1 percent of GDP from 85.2 percent.

Among the big four Eurozone economies, Germany saw its public finances balance last year versus a 0.1 percent surplus in 2012. The budget deficit in France narrowed to 4.3 percent from 4.9 percent and that of Italy held steady at 3 percent. The shortfall in Spain shrunk to 7.1 percent from 10.6 percent.

Only Luxembourg registered a budget surplus last year, while deficits in ten EU states including the U.K., at 5.8 percent, exceeded the 3 percent threshold.

Government debt was the lowest in Estonia, at 10 percent, and the highest in Greece, at a massive 175.1 percent. Sixteen EU states registered debt ratios above the 60 percent limit.

The debt-to-GDP ratio for Germany fell to 78.4 percent, while that of France rose to 93.5 percent. The ratio climbed to 132.6 percent in Italy and to 93.9 percent in Spain.