"Following a relatively favorable fiscal outcome in 2007, public finances in the euro area look set to deteriorate," said the European Central Bank (ECB) in its June monthly bulletin.
The ECB said, the average general government budget deficit for the countries in the euro zone is projected to increase again in 2008 and 2009, which is partly for the sake of slowing economic growth.
The ECB said governments had used part of the money gained in the last year to finance increased sending or tax cuts, rather than to speed up cutting budget deficits or their debt when economic times were good.
The ECB also showed its worry about the trend warning that spending beyond their means will make euro zone governments vulnerable to the future economic turmoil.
Source: Xinhua
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