Greece’s public debt has fallen to its lowest level since 2009, before the country was forced to seek its first bailout package during the decade-long debt crisis. According to the draft budget submitted to Parliament on Monday, public debt is expected to drop to 145.4% of GDP in 2025 and decline further in 2026. This represents a significant fall from the historic high of nearly 210% in 2020, while the ratio is now lower than the 147.8% recorded in 2010, when the first bailout program was approved.
Read: Early debt repayment of €5.3 billion: What is Greece’s strategy
This development marks another milestone in Greece’s restoration as a credible borrower. The country has already regained investment grade status, repaid IMF loans early, and plans to do the same with part of its European interstate bailout loans. As a result, officials project a debt-to-GDP ratio of 137.6% for 2026.
The progress is remarkable, especially at a time when countries like France, which had supported Greece’s bailout programs, are now facing similar fiscal turmoil. The political crisis in Paris has pushed the yield spread between French and German bonds to its highest level since late 2024, according to Bloomberg.
Bloomberg: The dramatic improvement in our country’s debt profile
Greece has dramatically improved its debt profile, outperforming fiscal targets for four consecutive years. In 2025, it is expected to achieve a surplus of 0.6% of GDP, instead of the initially projected deficit of 0.6%, while the 2026 draft budget forecasts a small deficit of 0.1%.
Its fiscal picture contrasts sharply not only with France, but with most of the EU, as in 2024 Greece was one of only six countries that posted a budget surplus.
