Luxembourg Among the Most Fiscally Prudent EU Member States
Luxembourg continues to stand out as a model of sound financial management within the European Union. According to an Eurostat report released on Tuesday, the Grand Duchy recorded a budget surplus of €888 million in 2024 — equivalent to over 1% of its gross domestic product (GDP). Notably, Luxembourg did not take on any new debt over the year, placing it among a select group of EU countries with a positive fiscal balance. This group includes Denmark, Ireland, Cyprus, Greece, and Portugal.
Luxembourg also ranks among the top performers in terms of public debt levels. At the end of 2024, the country's public debt stood at approximately €22.7 billion, or 26.3% of GDP — far below the EU's recommended ceiling of 60%. Only Estonia (23.6%) and Bulgaria (24.1%) posted lower debt-to-GDP ratios. In contrast, the EU average was 81%, and the eurozone average was 87.4%. The most indebted countries remain Greece (153.6%), Italy (135.3%), and France (113.0%).
Public spending in Luxembourg reached 46.9% of GDP in 2024, remaining virtually unchanged from the previous year. Meanwhile, public revenue increased to 47.9% of GDP, exceeding both the eurozone average of 46.5% and the EU average of 46%. Eurostat data also showed that Luxembourg's GDP grew from €81 billion in 2023 to approximately €86 billion in 2024.
Overall, 12 EU countries reported a budget deficit exceeding 3% of GDP in 2024. Among the highest were Romania (-9.3%), Poland (-6.6%), and France (-5.8%). Germany, with a deficit of 2.8%, remained below the permitted threshold. The average EU budget deficit declined slightly to 3.2% of GDP but remains above the Maastricht target.
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