· The 27 countries in the European Union reported a current account deficit of $2.8 billion for the fourth quarter of 2007, a decrease of $18.4 billion from the third quarter.  A major factor in the decline was the reduction in the deficit of the United Kingdom, which declined from $29.7 billion to $8.2 billion. (See the first  chart.)  For the year as a whole the deficit declined from $82.9 billion in 2006 to $72.4 billion in 2007.

· Within the European Union, the fifteen countries of the Euro Area reported a surplus of $11.0 billion in the fourth quarter, a decline from the $13.6 of the third year.  For the entire year, 2007, the Euro Area reported a surplus of $26.4 billion in contrast to a deficit of $1.3 billion in 2006.  The second chart compares the current account balances of the entire EU area and the Euro Area.

· In the fourth quarter the EU reported surpluses with the United States ($33.6 bil.), Switzerland ($9.2 bil,), Canada $4.9 bil.), India($2.2 bil.) and Hong Kong ($2.2 bil.); and deficits with China (38.6 bil.), Russia ($8.7 bil.) and Japan ($6.2 bil.).