Fiscal policy Analysis: Denmark is the biggest spender in the EU
Denmark is currently pursuing the most expansive fiscal policy in the EU. On the other side is Malta, which is the most frugal. This is the result of an analysis by the Vienna-based Momentum Institute based on data from the EU Commission.
07.10.2025, 08:59
SDA
The trade union-affiliated institute evaluated the so-called fiscal stance - a measure of a country's fiscal policy orientation - of the EU countries. However, the need for savings is not the same everywhere.
According to the analysis, eleven EU countries have a positive or restrictive fiscal stance, meaning that their net expenditure is increasing less than potential growth. The opposite is true for 15 countries: they are pursuing an expansionary fiscal policy and their fiscal stance is therefore negative. In the case of Ireland, both values are balanced.
Denmark can afford to spend freely
The list is headed by Denmark, which has the most expansionary fiscal policy at -2.6 percent. The northern European country can certainly afford to spend freely, as it achieved a budget surplus of 4.5% of gross domestic product (GDP) in 2024.
In contrast, Malta is pursuing the most restrictive austerity course within the EU with a fiscal stance of 1.9%, followed by Romania (1.4%) and Austria (1.3%). All three countries have to restructure their out-of-control budgets, not least because of the EU's ongoing excessive deficit procedure against them.
By contrast, Hungary, Belgium (both -0.4) and Poland (-0.3) appear to be less impressed by an excessive deficit procedure and are sticking to an expansionary budget policy.
