Euro Area Debt Rises to 87.7 Percent of GDP as the 2025 Deficit Stays at 3.0 Percent
Euro area government debt rose to 87.7 percent of GDP at the end of 2025, up from 86.6 percent a year earlier. The deficit stayed at 3.0 percent of GDP for a second straight year, Eurostat said on 21 October in its second notification of 2025 data. Across the EU, the deficit was unchanged at 3.1 percent, while debt climbed to 81.5 percent from 80.3 percent.
The 2025 figures cover the 20-country euro area. Bulgaria joined on 1 January 2026, so the quarterly figures cover 21 members.
A Flat Deficit and a Larger Debt Stock
The flat deficit ratio hides two moving parts. Revenue rose 0.6 point of GDP in 2025, on our calculation, and spending rose 0.5 point. The two moves almost cancelled out.
In cash terms the euro area deficit reached 475.8 billion euros in 2025, on our calculation, 9.1 billion euros more than in 2024. The debt stock rose by 655.7 billion euros to 13.92 trillion euros, on our calculation.
The ratio climbed because debt outran the economy. Euro area debt grew 4.9 percent in 2025 while nominal GDP grew 3.6 percent, on our calculation. In the wider EU, debt grew 5.7 percent and GDP 4.2 percent, on our calculation.
The April first notification had put the 2025 euro area deficit at 2.9 percent and debt at 87.8 percent. The October data move the deficit up 0.1 point and debt down 0.1 point, on our calculation. The EU deficit was unchanged at 3.1 percent, and EU debt was revised to 81.5 percent from 81.7 percent. The statistics office made no amendments to the data member states reported. It did express a reservation on Bulgaria’s 2025 figures over operations of the Road Infrastructure Agency. Bulgaria currently records these as affecting its 2025 deficit by 0.6 percent of GDP.
Euro area and EU public finances, 2024 and 2025
| Measure | Euro area 2024 | Euro area 2025 | EU 2025 |
|---|---|---|---|
| Deficit, % of GDP | 3.0 | 3.0 | 3.1 |
| Debt, % of GDP | 86.6 | 87.7 | 81.5 |
| Revenue, % of GDP | 46.2 | 46.8 | 46.3 |
| Expenditure, % of GDP | 49.3 | 49.8 | 49.4 |
Euro area is the 20-member area for both years. EU 2024: deficit 3.1%, debt 80.3%, revenue 45.8%, expenditure 48.9%. Second notification of 2025 data, released 21 October 2026.
5 Surpluses and 11 Deficits at or Above 3 Percent
Cyprus, Denmark, Greece, Ireland and Portugal ran surpluses in 2025. Cyprus had the largest, at 3.6 percent of GDP. The other 22 member states ran deficits, on our count, and 11 of them were at or above 3 percent.
Romania had the largest deficit, at 7.8 percent. That was 1.4 points narrower than its 9.2 percent of 2024, on our calculation. Poland moved the other way. Its deficit widened to 7.2 percent from 6.4 percent. Its debt ratio rose 4.8 points to 59.6 percent, on our calculation.
France weighs heavily on the euro area totals. Its deficit fell to 5.1 percent from 5.8 percent, a drop of 17.5 billion euros in cash, on our calculation. Even so, France alone accounted for 31.9 percent of the euro area deficit in 2025, on our calculation. Its debt of 3.46 trillion euros was 24.9 percent of the euro area total, on our calculation. Its ratio rose 3.1 points to 115.7 percent, on our calculation.
Germany’s shortfall rose by 13.0 billion euros to 132.1 billion euros, on our calculation, more than the 9.1 billion euro rise for the whole euro area. Its ratio reached 2.9 percent from 2.7 percent. Germany, France, Italy and Spain together accounted for 79.7 percent of euro area debt, on our calculation.
Italy and Spain both cut their deficits. Italy’s deficit narrowed to 3.1 percent, 5.0 points below its 8.1 percent of 2022, on our calculation. Spain’s deficit fell to 2.4 percent of GDP, and in euros it was 20.0 percent smaller than in 2024, on our calculation. Spain’s debt ratio slipped to 100.5 percent from 101.4 percent.
Largest deficits in the EU, % of GDP
| Country | 2024 | 2025 |
|---|---|---|
| Romania | 9.2 | 7.8 |
| Poland | 6.4 | 7.2 |
| Belgium | 4.4 | 5.2 |
| France | 5.8 | 5.1 |
Deficits shown as positive numbers. Hungary (4.7%), Slovakia (4.4%), Austria (4.1%), Bulgaria (4.0%), Finland (3.8%), Italy (3.1%) and Croatia (3.0%) complete the 11 at or above 3% in 2025.
Greece Cuts Its Ratio by 32.4 Points in 3 Years
12 member states had debt above 60 percent of GDP at the end of 2025. Greece had the highest ratio, at 145.4 percent. Estonia had the lowest, at 24.0 percent.
Greece’s ratio has fallen 32.4 points since 2022, when it stood at 177.8 percent, on our calculation. On our reading, most of that came from growth, not repayment. Greek debt fell by 5.0 billion euros over the 3 years, while nominal GDP rose 20.6 percent, on our calculation. Cyprus cut its ratio by 27.7 points over the same period and Portugal by 22.0 points, on our calculation.
Other ratios moved up. Finland’s rose 14.3 points from 2022 to 88.4 percent, on our calculation. Belgium’s rose 4.1 points in 2025 alone, to 108.1 percent, on our calculation. Bulgaria, the euro area’s newest member, saw its ratio climb 6.2 points to 29.9 percent, on our calculation. Even so, it is the fourth lowest ratio in the EU.
Debt ratios at the top of the EU, % of GDP
| Country | 2022 | 2025 |
|---|---|---|
| Greece | 177.8 | 145.4 |
| Italy | 138.4 | 136.7 |
| France | 111.4 | 115.7 |
| Belgium | 103.3 | 108.1 |
| Spain | 109.3 | 100.5 |
Lowest in 2025: Estonia 24.0%, Luxembourg 26.0%, Denmark 27.2%, Bulgaria 29.9%. 12 member states were above 60%.
The Second Quarter of 2026
Debt kept rising into 2026. At the end of June the euro area ratio, now for 21 members, was 88.8 percent, up from 88.4 percent at the end of March and 87.3 percent a year earlier. In the EU it was 82.9 percent. The euro area debt stock grew by 732.5 billion euros over the year to June, or 5.3 percent, on our calculation. Debt securities made up 84.5 percent of it.
The seasonally adjusted deficit widened to 3.3 percent of GDP in the euro area, from 3.2 percent in the first quarter. That is 0.5 point wider than a year earlier, on our calculation. Eurostat put the quarterly rise in seasonally adjusted euro area spending at an estimated 28 billion euros. The EU deficit rose to 3.5 percent from 3.1 percent.
The gap at the top of the debt table has nearly closed. Greece’s quarterly ratio stood at 140.8 percent in June and Italy’s at 139.9 percent, a difference of 0.9 point against 14.4 points a year earlier, on our calculation. Greece cut 11.2 points in the year. Poland had the largest quarterly increase, 3.0 points, to 64.5 percent. 15 member states saw their ratio rise in the second quarter and 10 saw it fall.
Quarterly euro area and EU figures, 2026, % of GDP
| Measure | Q1 2026 | Q2 2026 |
|---|---|---|
| Euro area deficit, seasonally adjusted | 3.2 | 3.3 |
| EU deficit, seasonally adjusted | 3.1 | 3.5 |
| Euro area debt | 88.4 | 88.8 |
| EU debt | 82.5 | 82.9 |
Provisional data. Euro area is the 21-member area. For Greece, Bulgaria and Poland, differences between annual and quarterly GDP figures make the quarterly debt ratios differ from the annual ones.
Why it matters: The euro area deficit is holding steady, but debt is growing faster than the economy. The first half of 2026 showed no turn, on our reading. France and Germany together ran 59.6 percent of the euro area’s 2025 deficit, on our calculation, so their budgets carry most of the weight.
Outlook: The third quarter figures are due on 22 January 2027. The next annual deficit and debt release is due on 21 April 2027. The things to watch are whether Germany’s seasonally adjusted quarterly deficit, at 4.1 percent in the second quarter, carries into the annual figure, and whether Greece’s ratio falls below Italy’s.
Sources: Eurostat, The Edge.
