Poland's debt is growing. How do we compare to Europe and who lives beyond their means? [WYKRES]
Europe is up to its eyeballs in debt. The scale of this phenomenon is shown by the report published on Thursday by the European statistical office (Eurostat). “At the end of the third quarter of 2025, the ratio of general government gross debt to GDP in the euro area (EA20) was 88.5%. In the EU, this ratio increased to 82.1%.“- we read.
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In both cases it is visible progressive increase in debt. Only in three months in the euro zone this increase amounted to 0.3 percentage points, and in the EU – 0.2 percentage points. In turn, a year earlier, debts were at the level of 87.7 percent, respectively. and 81.3 percent
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What constitutes this huge debt? In approximately 84 percent are debt securities, another 13-14 percent. are loans, and 2.5 percent cash and deposits.
Countries with the highest debt. New Eurostat data
The highest public debt to GDP ratio at the end of the third quarter of 2025 was recorded in Greece (149.7%), Italy (137.8%), France (117.7%), Belgium (107.1%) and Spain (103.2%)..
State debt exceeding the 100% threshold. GDP means that a country owes its creditors more money than the total value of all the goods and services it can produce in an entire year. This situation suggests that the state lives beyond its means, and its annual national income would not be enough to repay all the loans taken at once.
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A high level of debt in relation to GDP is a key indicator of a country's ability to repay its debt, because the higher this percentage, the more difficult it is for the government to finance current expenses without incurring further liabilities. This often leads to an increase in debt servicing costs, i.e. the need to allocate more and more budget amounts to interest alone instead of to investments, health or education, which economists call the snowball effect.
Although some powerful economies, such as the USA or Japan, have been operating with such debt for years, for many countries, exceeding this limit is associated with the risk of losing financial credibility, increasing inflation and slowing down economic development.
Countries with the lowest debt. Where is Poland?
Eurostat also lists countries with the lowest debt to GDP ratio. This Estonia (22.9%), Luxembourg (27.9%), Bulgaria (28.4%) and Denmark (29.7%).
Debt in relation to GDP
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Eurostat
Poland is approximately in the middle of the pack, with a result of 58.1%.. This is a much lower level of debt than the average in the EU and the euro area. Our indicator is at a level similar to Romania and Croatia.
Compared to the second quarter of 2025, eleven Member States saw their debt-to-GDP ratio increase and sixteen saw a decline. The biggest increase relations were recorded in Luxembourg (+2.6 percentage points), Bulgaria (+2.1), France (+1.8), Lithuania and Romania (+1.6 each) and Austria (+1.5).
The biggest declines was recorded in Latvia (-2.9 percentage points), Greece (-2.2), Slovenia and Finland (-1.7 each).
