Ireland reported a spectacular drop in the deficit to 13.4 per cent from 30.9 per cent as the one-off expense of shoring up the banking sector disappeared from the books.
However, the State's debt jumped to 106.4 per cent from 92.2 per cent according to the European Union's statistics office in Luxembourg.
Across the euro region the combined debt burden surged last year to the highest since the start of the single currency as governments struggled to fill budget gaps and contain the fiscal crisis.
The debt of the 17 nations using the euro climbed to 87.3 per cent of gross domestic product in 2011 from 85.4 per cent the previous year.
But the region's fiscal deficit fell sharply last year as governments slashed expenses and raised taxes to regain market confidence in their public finances.
Greece had the highest debt in Europe last year, reaching 170.6 per cent of GDP even though it reduced its deficit to 9.4 per cent from 10.7 per cent in 2010 and 15.6 per cent in 2009.
The 2011 Greek deficit number is 0.3 percentage points higher than estimated by Eurostat in April, mainly because of a downward revision of Greek economic growth, Eurostat said.
The euro zone's biggest economy, Germany, slashed its budget deficit to 0.8 per cent in 2011 from 4.1 per cent in 2010 and its debt fell to 80.5 per cent of GDP from 82.5 per cent.
European governments are seeking ways to plug their deficits and restore investor confidence as the economy shows signs of a deepening economic slump.
Greek prime minister Antonis Samaras's government has been negotiating with the euro area and the International Monetary Fund over €13.5 billion of austerity measures for 2013 and 2014 needed to qualify for the release of more loan installments.
Fourteen EU member states exceeded the EU debt limit last year, according to today's report. Germany's debt burden was at 80.5 per cent of GDP, down from 82.5 per cent in 2010. In Greece, Ireland and Portugal, which all have received government bailouts, debt increased from the previous year.
Spain's debt rose to 69.3 per cent from 61.5 per cent.
Agencies
