ANNUAL REPORT 2008 - Polymer Bank Notes of the World

Table 5 Fiscal positions in the euro area and euro area countries(as a percentage of GDP)General government surplus (+) / deficit (-)2006 2007 2008Belgium 0.3 -0.3 -0.9Germany -1.5 -0.2 -0.1Ireland 3.0 0.2 -6.3Greece -2.8 -3.5 -3.4Spain 2.0 2.2 -3.4France -2.4 -2.7 -3.2Italy -3.4 -1.6 -2.8Cyprus -1.2 3.4 1.0Luxembourg 1.3 3.2 3.0Malta -2.3 -1.8 -3.5Netherlands 0.6 0.3 1.1Austria -1.5 -0.4 -0.6Portugal -3.9 -2.6 -2.2Slovakia -3.5 -1.9 -2.2Slovenia -1.2 0.5 -0.9Finland 4.1 5.3 4.5Euro area -1.3 -0.6 -1.7General government gross debt2006 2007 2008Belgium 87.8 83.9 88.3Germany 67.6 65.1 65.6Ireland 24.7 24.8 40.8Greece 95.9 94.8 94.0Spain 39.6 36.2 39.8France 63.6 63.9 67.1Italy 106.9 104.1 105.7Cyprus 64.6 59.4 48.1Luxembourg 6.6 7.0 14.4Malta 63.8 61.9 63.3Netherlands 47.4 45.7 57.3Austria 62.0 59.5 59.4Portugal 64.7 63.6 64.6Slovakia 30.4 29.4 28.6Slovenia 26.7 23.4 22.1Finland 39.2 35.1 32.8Euro area 68.3 66.1 68.7Source: European Commission.Notes: Data are based on ESA 95 definitions. In the Commission’s forecast, the euro area average includes Slovakia, which joined theeuro area on 1 January 2009.2007 Greek deficit was revised upwards to 3.5%of GDP in Eurostat’s validation of the autumn2008 notification, from 2.8% in the spring 2008notification. The revision resulted from thecorrection of the recording of EU grants andthe improved coverage of extra-budgetary, localgovernment and social security funds. Comparingthe 2008 figures with the targets set in the stabilityprogramme updates released at the end of 2007and in early 2008, the euro area average balancefell short by 0.8 percentage point of GDP.As a result of the economic and fiscal deteriorationand the interventions by governments to stabilisethe financial system, the average governmentdebt ratio in the euro area rose from 66.1% ofGDP in 2007 to 68.7% of GDP in 2008. The debtincrease could end up being even more sizeable,depending on the statistical classification offinancial rescue operations by Eurostat, whichhas yet to be finalised (see Box 7). In particular,government debt increased significantly incountries which undertook sizeable interventionsin financial institutions or which experienced asharp macroeconomic slowdown. The annualgrowth rate of debt securities issued by euroarea governments in 2008 increased noticeablycompared with 2007, while sovereign spreadsvis-à-vis Germany widened considerably forsome countries (see Box 6).70 ECBAnnual Report2008