Eurostat announced on 21 October that the euro area government deficit stayed at 3.0% of GDP in 2025, as in 2024, while in the EU it stood at 3.1%. Euro area government debt rose to 87.7% of GDP from 86.6%. Five countries posted surpluses, led by Cyprus at 3.6% with Greece at 2.0%, while the largest deficits were in Romania, Poland, Belgium and France. Greece remains the country with the highest debt, at 145.4% of GDP, followed by Italy at 136.7%.
What it means: Greece's position in the Eurostat data has two sides. On one hand, its overall surplus places it among the most fiscally disciplined EU countries, which supports its credit rating and the state's borrowing costs. On the other, debt remains the highest in Europe as a share of GDP, though it is falling steadily. For businesses, the fiscal picture affects financing costs indirectly, since Greek government bond yields act as a base for pricing loans. The surplus also gives the government room for measures such as tax cuts or support schemes without breaching EU fiscal rules. By contrast, high deficits in large economies such as France and Poland mean many of Greece's trading partners will need fiscal adjustment, which could weigh on demand for Greek exports and tourism. Eleven member states were at or above the 3% threshold, which will occupy the Commission under the excessive deficit procedures. Eurostat expressed a reservation on the data for Bulgaria, which joined the euro area this year.
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