High-Price Energy Measures Are Influencing the Q3 Balance Sheet

Compared to the end of the second quarter of last year, this figure has improved by 282 billion euros, while compared to the end of the third quarter of 2021, it is higher by 1,318 billion euros.

According to the European Statistical Institute, the financial accounts of the general government include transactions of financial assets and liabilities, as well as the balance of financial assets and liabilities. The difference between the balance of financial assets and the balance of liabilities is net financial worth.

Market Value Decreasing

Eurostat emphasized that net financial value can change because of transactions or other economic flows (mainly price changes, also known as gains or losses). The main financial instruments of liability in the balance sheet of the general government are debt securities. As they are traded on the financial markets, the value of these instruments changes over time.

In recent quarters, the market value of existing debt securities at the EU level has decreased, especially due to the increase in interest rates.

The report concluded that the largest part of financial assets on the balance sheet of EU governments is shares or units of capital in investment funds, mainly consisting of shares held in public companies. This includes shares in central banks, the value of which is affected by the revaluation of monetary reserves. At the EU level, the increase in the value of shares or shares in investment funds and the decrease in the value of debt securities contributed to the improvement of the net financial value in the last quarter. At the same time, the continuing general government deficit contributed negatively to the net financial value.