The numbers show how far member states have leaned on borrowing to absorb the economic pressure of recent years. Governments in the single-currency bloc took in €2.3 trillion in total revenue over the quarter, or roughly $2.63 trillion. Spending ran ahead of that at €2.4 trillion, leaving a gap that had to be financed.

Deficits hold near the 3% mark

The government deficit in the euro area landed at 3% of gross domestic product for the first three months of the year. The European Union as a whole recorded a marginally wider gap of 3.1% over the same period.

That 3% line matters because it is the reference value written into the EU’s budget rules. Member states that drift above it can end up under closer scrutiny from the European Commission, which has been tightening its grip on national budgets since the revised fiscal framework took effect.

A gap that keeps widening the debt pile

Debt ratios and deficits feed into each other. As long as governments spend more than they collect, the outstanding debt stock keeps growing relative to the size of the economy, unless growth or inflation erodes it faster.

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