Eurozone Debt Reaches 88.2% of GDP; Greece Still Most Indebted

The gross government debt-to-GDP ratio in the eurozone rose to 88.2% at the end of the second quarter of 2025, up from 87.7% in the previous quarter. Across the European Union, the ratio also inched higher, reaching 81.9% from 81.5%.

Eurostat data show that compared with the second quarter of 2024, debt levels have increased both in the eurozone (from 87.7% to 88.2%) and the EU overall (from 81.2% to 81.9%).

At the end of Q2 2025, government debt in the eurozone consisted of 84.2% securities, 13.2% loans, and 2.5% cash and deposits. In the EU, the composition was similar, with 83.7% securities, 13.8% loans, and 2.5% cash and deposits.

Eurostat also publishes quarterly data on intergovernmental loans, reflecting financial support between EU member states. At the end of June 2025, intergovernmental debt stood at 1.4% of GDP in the eurozone and 1.2% in the EU.

Country-Level Debt Trends

Among member states, the highest debt-to-GDP ratios at the end of Q2 2025 were recorded in Greece (151.2%), Italy (138.3%), France (115.8%), Belgium (106.2%), and Spain (103.4%). The lowest ratios were in Estonia (23.2%), Luxembourg (25.1%), Bulgaria (26.3%), and Denmark (29.7%).

Compared with the first quarter of 2025, fifteen member states saw their debt ratios rise, while twelve experienced declines. Finland, Latvia, Bulgaria, Portugal, France, and Romania recorded the largest increases. Lithuania, Ireland, Greece, and Luxembourg posted the most significant decreases.

Looking year-on-year from Q2 2024, sixteen member states recorded higher debt ratios, while eleven saw reductions. Amongst those that saw the largest increases are Finland, Poland, Romania and Bulgaria. In contrast Greece, Ireland, Cyprus, Denmark, and Portugal recorded the sharpest declines.

Despite the overall increases, Greece remains the EU’s most indebted country, underscoring persistent fiscal challenges in the southern eurozone.

Source: tovima.com