Greece Leads Europe in Debt Reduction

Eurostat reports Greece achieved the largest reduction in public debt within the European Union during the first quarter of 2026, decreasing it by 9.4 percentage points compared to the same period in 2025. The country’s debt fell to 143.5% of GDP, a 69.4 point improvement over the peak recorded during the pandemic in early 2021.

This marks the fastest rate of debt reduction for Greece both within Europe and among OECD nations. While still holding the highest public debt in the EU due to past bailout loans, Greece is now less than five percentage points behind Italy, which currently stands at 138.9% of GDP.

The reduction isn't just proportional to GDP. Greece also decreased its total debt by over 6 billion euros, bringing it to 360 billion euros in the first quarter.

This occurred as debt-to-GDP ratios increased in 19 other EU member states. Government officials emphasize that reducing debt lowers borrowing costs and bolsters investor confidence.