Luxembourg/Brussels  -  European Union governments reduced their deficits in 2007, according to estimates Friday by Eurostat that also confirmed that Slovakia is on course to joining the euro.

According to the Luxembourg-based statistical office, the government deficit of the EU's 27 member states, when taken as a whole, fell from 1.4 per cent in 2006 to 0.9 per cent of gross domestic product in 2007.

Over the same period, the deficit for the 15 countries that share the common European currency fell from 1.3 to 0.6 per cent of GDP.

Overall public debt also fell, from 61.2 to 58.7 per cent of GDP in the EU27 and from 68.4 to 66.3 per cent of GDP in the euro area.

The largest government deficits, as a percentage of GDP, were recorded by Hungary (-5.5 per cent), Britain (-2.9 per cent), Greece (-2.8 per cent), France (-2.7 per cent) and Portugal (-2.6 per cent).

A total of 11 EU countries registered a government surplus in 2007. These are Finland, Denmark, Sweden, Bulgaria, Cyprus, Luxembourg), Estonia, Spain, the Netherlands, Ireland and Germany.

The Eurostat figures also confirmed that Slovakia, which is hoping to join the euro next year, had cut its government deficit, from 3.6 to 2.2 per cent of GDP - well below the 3 per cent limit set for euro member states.

Slovakia cleared another key hurdle on Wednesday, when a March inflation index came in well below the target set by European authorities.

The EU's executive, the European Commission, and the European Central Bank are expected to rule on May 7 on Slovakia's application to become the eurozone's 16th nation. (dpa)