Eurozone budget deficit widens to 3.3% of GDP in Q2

The euro area's seasonally adjusted budget deficit rose to 3.3% of GDP in Q2 from 3.2% in Q1, indicating a slight fiscal deterioration. The increase is modest and may reflect ongoing spending pressures or weaker revenues, but the data does not signal a major shift in fiscal policy. This could have implications for EU fiscal rule compliance and sovereign bond yields.