The share of government debt of European Union countries to their gross domestic product (GDP) decreased to 81.7 percent at the end of the fourth quarter of 2025, compared to 82 percent at the end of the third quarter, according to the latest Eurostat data published today. In the eurozone, the ratio is 87.8 percent compared to 88.4 percent, BTA writes.
On an annual basis, however, the share of government debt has increased both in the EU - from 80.7 percent in the fourth quarter of 2024 to 81.7 percent, and in the eurozone - from 87 percent to 87.8 percent.
Bulgaria's government debt, relative to the country's economic output, increased to 29.9 percent at the end of last year from 28.4 percent at the end of the third quarter. Thus, our country ranked fourth in the EU in terms of the lowest liabilities, presented as a percentage of GDP. For the first time, Bulgaria is not among the three EU countries with the lowest debt-to-GDP ratio since the end of the third quarter of 2008. At that time, our country was in sixth place in the EU with a government debt-to-GDP ratio of 13.6 percent, according to a BTA report on the Eurostat database.
At the end of the fourth quarter of 2025, debt securities represented 83.5 percent of total government debt in the EU and 84.1 percent in the euro area, loans - 14.2 percent and 13.5 percent, respectively, and available currency and deposits - 2.4 percent each in both the EU and the monetary union.
At the end of the fourth quarter of 2025, the highest government debt-to-GDP ratio among EU countries was reported in Greece (146.1 percent), Italy (137.1%), France (115.6%), Belgium (107.9%) and Spain (100.7%). The lowest government debt-to-GDP ratios for the fourth quarter of 2025 were recorded in Estonia (24.1%), Luxembourg (26.5%), Denmark (27.9%) and Bulgaria (29.9%).
Compared to the third quarter of 2025, 12 Member States reported an increase in the debt-to-GDP ratio at the end of the fourth quarter of 2025, while 14 reported a decrease, while the ratio remained unchanged in Malta. The largest increases were recorded in Latvia and the Netherlands (both 2.1 percentage points), Sweden (1.9 pp), Poland (1.8 pp), Finland (1.6 pp) and Bulgaria (1.5 pp). The most significant decreases were recorded in Portugal (-7.8 pp), Cyprus (-5.3 pp), Greece (-3.6 pp) and Spain (-2.5 pp).
Compared to the fourth quarter of 2024, 19 Member States recorded an increase in the debt-to-GDP ratio at the end of the fourth quarter of 2025, while 8 Member States recorded a decrease. The largest increases were recorded in Finland (6.2 percentage points), Bulgaria (6 pp), Poland (4.8 pp), Romania (4.5 pp), Belgium (3.9 pp), France (2.9 pp) and Italy (2.4 pp). The largest decreases were recorded in Greece (-8 pp), Cyprus (-7.7 pp), Ireland (-5.4 pp), Portugal (-3.8 pp) and Denmark (-2.6 pp).