Government budget deficits in the EU  - - European Union -  - more than doubled in 2008 and the total government budget shortfall in the EU27 was 2.3% of GDP (gross domestic product) up from 0.8% in 2007, according to Eurostat, the EU's statistics office. Ireland headed the deficit rankings at 7.1% and Finland had highest surplus at 4.2%. Denmark was runner-up at 3.6%.

For the 16-country Eurozone, the total government budget deficit was 1.9% of GDP, up from 0.6% in 2007.

In the current year, the European Commission expects government finances to deteriorate further during the severe recession and on Wednesday, the UK government announced, that borrowings this year will rise to £175 billion - - equivalent to 12.4% of GDP.

The rise in government debt is preventing countries like Ireland from spending their way out of recession.

Under the rules of the Euro Stability and Growth Pact, members of the Eurozone must keep annual deficits below 3% of GDP. According to Eurostat, 12 countries breached that ceiling last year. Ireland, which had a 7.1% deficit compared with a surplus of 0.2% in 2007 and 3% in 2006, headed the deficit rankings. The UK was second with a 5.5% shortfall.

The Commission had expected a 6.3% deficit in Ireland in January and a 4.6% deficit in the U.K. Greece's budget deficit was 5% of GDP, according to Eurostat. The Commission had forecast a 3.4% shortfall.

In addition to expanding annual deficits, countries are also seeing their debt-to-GDP ratios rise. EU rules restrict government debt to 60% of GDP. But the total EU ratio rose to 61.5% in 2008 from 58.7% a year earlier. In the Eurozone, the total debt-to-GDP ratio jumped to 69.3% of GDP from 66% in 2007. Nine EU states breached the debt ceiling last year. Italy's debt-to-GDP ratio was 105.8%  - - the highest - -  while Ireland's was at 43.2%.

Country Data Tables