Greece Leads Eurozone in Fastest Debt Reduction

Greece has achieved the largest and fastest simplification successful its debt-to-GDP ratio among eurozone countries, marking a important displacement successful its fiscal trajectory aft years of elevated nationalist indebtedness levels.

According to investigation by Alpha Bank, Greece’s debt-to-GDP ratio has fallen from 209.4% successful 2020 to 146.1% successful 2025, a diminution of much than 63 percent points within 5 years. This represents the steepest simplification recorded successful the euro country implicit that period.

Sustained downward trend successful indebtedness levels

The betterment is not constricted to the ratio alone. The study notes that Greece, alongside Ireland and Cyprus, is among the lone eurozone countries to person reduced its nominal indebtedness successful the 2024–2025 period, while respective large economies such arsenic France, Italy and Spain saw increases.

The diminution has been supported by a operation of economical growth, fiscal subject and indebtedness absorption measures, including aboriginal repayments of existing obligations.

A cardinal publication came from the aboriginal repayment of €5.3 cardinal successful loans linked to Greece’s archetypal fiscal assistance programme launched successful 2010.

Strong surpluses and economical growth

A important origin down the betterment has been Greece’s continued superior fund surpluses. In 2025, the state recorded a superior surplus of 4.9% of GDP, equivalent to €12.1 billion, for the third consecutive year.

This show stands successful opposition to the bulk of eurozone members, which reported superior deficits. The surplus was driven by rising revenues linked to economical growth, higher employment, wage increases and concern activity, arsenic well arsenic structural improvements such arsenic reduced tax evasion and accrued integer payments.

Real GDP maturation of 2.1%, combined with inflationary pressures, led to a 4.9% summation successful nominal GDP successful 2025, further supporting the simplification successful the indebtedness ratio.

Outlook for further decline

Official projections cited successful the study suggest that Greece’s debt-to-GDP ratio will proceed to decline, reaching 136.8% successful 2026 and 130.3% successful 2027. Primary surpluses are expected to stay astatine 3.2% of GDP implicit the aforesaid period.

If existent trends persist, Greece could spot its indebtedness ratio autumn beneath that of Italy within the adjacent two years. Such an result would people a notable milestone, ending a two-decade play during which Greece held the highest indebtedness ratio successful the eurozone.

Policy space and economical resilience

The sustained betterment successful nationalist finances is seen arsenic strengthening capitalist assurance and expanding fiscal space for targeted argumentation measures within European fiscal rules.

Authorities person already announced further support packages totaling €500 cardinal for households and businesses, pursuing earlier measures of €300 million, aimed astatine offsetting higher vigor costs linked to geopolitical tensions successful the Middle East.

At the European level, initiatives such arsenic “AccelerateEU” are besides being developed to code vigor costs and support the transition toward cleaner home vigor sources done combined nationalist and backstage investment.

Overall, the information points to a marked displacement successful Greece’s fiscal position, driven by stronger growth, improved gross show and progressive indebtedness management.

Source: tovima.com