BRUSSELS, Sept. 26 (Xinhuanet) -- Government deficit in the euro-zone and in all the 25 member states of the European Union (EU) improved in 2004 compared to 2003, while the government debt increased, said Eurostat, the EU's statistical office, in a report released on Monday.

    In the euro-zone, government deficit dropped from 3.0 percent of GDP in 2003 to 2.7 percent in 2004. The figure fell from 3.0 percent in 2003 to 2.6 percent in 2004 EU-wide.

    Government deficit in the euro-zone was 2.5 percent in 2002 and 1.9 percent in 2001. Figures for the EU as a whole were 2.3 percent in 2002 and 1.3 percent in 2001, the report said.

    In the euro-zone, government debt to GDP ratio rose from 70.4 percent in 2003 to 70.8 percent in 2004. In the 25 members of the EU, the ratio rose from 63.0 percent to 63.4 percent, said Eurostat.

    Government debt was 69.2 percent of GDP in 2002 and 69.3 percent in 2001 in the euro-zone. In the 25 EU members, it was 61.4 and 62.0 percent in 2001 and 2002 respectively.

    In 2004, the largest government deficits in percentage of GDP were recorded in Greece (-6.6 percent), Hungary (-5.4 percent), Malta (-5.1 percent), and Cyprus (-4.1 percent).

    Another eight member states recorded a government deficit over or equal to three percent of GDP, they are: Poland, Germany, France, Italy, Slovakia, Britain, the Czech Republic and Portugal.

    A limit of government deficit of less than three percent of the GDP was set in the Maastricht Treaty signed in Dec. 1991.

    Six EU members continued to register a government surplus in 2004: Denmark, Finland, Estonia, Sweden, Ireland and Belgium.

    In all, 16 member states recorded an improved public balance relative to GDP, while eight registered a worsening balance, said Eurostat.

    In 2004, the lowest ratios of government debt to GDP were recorded in Estonia (5.5 percent), Luxembourg (6.6 percent), Latvia (14.7 percent) and Lithuania (19.6 percent). Eight member states exceeded the government debt ceiling of 60 percent of GDP set in the Maastricht treaty.

    These countries were the same as in 2003: Greece (109.3 percent), Italy (106.5 percent), Belgium (95.7 percent), Malta (75.9 percent), Cyprus (72.0 percent), Germany (66.4 percent), France (65.1 percent) and Austria (64.3 percent).

    Eurostat, however, has reservations on the quality of data provided by the Czech Republic, Greece and Portugal and must further examine their deficit and debt data, the report said. Enditem