Greece Still Has The Highest Debt-To-GDP In Europe; Bulgaria The Lowest

As European countries pour billions into defense spending, their debt piles are expanding—raising questions of national fiscal stability.

In France, a rising debt ratio led Fitch to downgrade its credit rating in September. The country has faced ongoing political turmoil as the countrys debt supply recently hit a record $4 trillion.

This graphic, via Visual Capitalist's Dorothy Neufeld, shows European Union debt-to-GDP by country, based on data from Eurostat.

The State of European Union Debt-to-GDP in 2025

Below, we show general government gross debt as a percentage of GDP as of Q1 2025 in the EU:

While Greeces economy is thriving in 2025—supported by tourism, real estate, and shipping sectors—its debt situation continues to rank as the worst in the EU.

However, its debt-to-GDP ratio has steadily fallen in recent years, from 180% in 2022 to 153% today. Given its recent economic momentum, the country launched an innovation and infrastructure fund with BlackRock designed to attract $1.2 billion in foreign investment.

Italy holds the second-highest debt-to-GDP ratio in the EU, at 138%. However, the country has made notable progress in narrowing its deficit, cutting it from 7.2% of GDP in 2023 to 3.4% in 2024 on the back of strong tax revenues. Like Greece, its debt levels have been gradually trending downward.

By contrast, debt is rising in France, where it stands at 114% of GDP. In efforts to combat its deteriorating fiscal situation, the French government has raised the retirement age, and proposed cutting two national holidays—stoking public outrage.

Meanwhile, Germanys debt ratio of 62% falls significantly below the EU average of 82%. At the same time, the country has eased its fiscal rules with massive defense spending, causing debt levels to rise.