Full Breakdown
Analysis of Euro Area and EU Government Debt Ratios at the End of 2025
4/23/2026, 9:03:52 PM
Overview of Government Debt Trends
As of the fourth quarter of 2025, the general government gross debt to GDP ratio in the euro area (EA20) was recorded at 87.8%, a slight decrease from 88.4% in the previous quarter. In the European Union (EU), the ratio also decreased from 82.0% to 81.7%. However, when compared to the same quarter in 2024, both regions saw an increase in their debt ratios, with the euro area rising from 87.0% and the EU from 80.7%.
The composition of government debt in the euro area consisted of 84.1% debt securities, 13.5% loans, and 2.4% currency and deposits. In the EU, these figures were 83.5%, 14.2%, and 2.4%, respectively. Intergovernmental lending (IGL) as a percentage of GDP was 1.3% in the euro area and 1.1% in the EU.
Country-Specific Debt Ratios
The highest government debt to GDP ratios among EU member states at the end of 2025 were observed in Greece (146.1%), Italy (137.1%), France (115.6%), Belgium (107.9%), and Spain (100.7%). Conversely, the lowest ratios were in Estonia (24.1%), Luxembourg (26.5%), Denmark (27.9%), and Bulgaria (29.9%).
In the context of quarterly changes, twelve member states reported an increase in their debt to GDP ratios from the previous quarter, while fourteen experienced a decrease. Notably, Latvia and the Netherlands each saw an increase of 2.1 percentage points, while Portugal experienced the largest decrease at -7.8 percentage points.
Year-on-Year Changes
When comparing the fourth quarter of 2025 to the same period in 2024, nineteen member states reported an increase in their debt ratios. Finland had the most significant increase at +6.2 percentage points, followed by Bulgaria (+6.0 pp) and Poland (+4.8 pp). In contrast, Greece saw the largest decrease at -8.0 percentage points, along with Cyprus (-7.7 pp) and Ireland (-5.4 pp).
Government Deficit Overview
In terms of government deficits, the seasonally adjusted general government deficit to GDP ratio stood at 3.0% in the euro area and 3.2% in the EU during the fourth quarter of 2025. The euro area deficit decreased slightly from 3.1% in the previous quarter, while the EU's deficit increased marginally from 3.1%.
Total government revenue in the euro area reached 47.3% of GDP, an increase from 46.9% in the third quarter of 2025. Total expenditure also rose to 50.3% of GDP, up from 50.0%.
Conclusion
The data released by Eurostat indicates a complex landscape of government debt and deficits across the euro area and EU. While there are slight improvements in debt ratios compared to the previous quarter, the year-on-year increases in debt ratios for many member states highlight ongoing fiscal challenges. The variations in deficits and revenues further underscore the diverse economic conditions within the EU.
