Euro-area government deficits – the difference between spending and revenues – were high before the introduction of the euro. By 1998, after several years of preparations for the euro, these deficits had been substantially reduced and indeed some countries had surpluses. After the launch of the euro in 1999, deficits were generally kept under control and within the 3% limit set by the SGP. However, the 2008 financial crisis has led to increasing deficits in some countries and falling surpluses in others – as governments support jobs and growth.
Source: European Commission