Greece recorded the European Union’s largest annual decline in government debt relative to the size of its economy in the second quarter of 2026, according to figures released by Eurostat on Wednesday.
The debt-to-GDP ratio fell to 140.8%, down 11.2 percentage points from a year earlier. Greece still had the EU’s highest ratio, slightly ahead of Italy at 139.9%.
Greek government debt stood at approximately 358.6 billion euros at the end of June, compared with 368.6 billion euros a year earlier. The quarterly figures are provisional.
The ratio also declined from the first quarter, by 2.7 percentage points. Across the euro area, it moved in the opposite direction, rising to 88.8%.
Greece’s budget surplus
A separate Eurostat release published on October 21 put Greece’s government surplus for 2025 at 2% of GDP, or approximately 4.94 billion euros.
Greece was one of five EU countries to report a surplus for that year, alongside Cyprus, Denmark, Ireland and Portugal. Its surplus had stood at 1.4% of GDP in 2024.
The annual data showed Greek government revenue at 49.8% of GDP in 2025 and spending at 47.8%. The country’s year-end debt ratio was 145.4%, compared with 153.5% at the end of 2024.
Those figures cover different periods from the new quarterly release: the surplus measures the government’s finances throughout 2025, while the second-quarter debt figure measures what it owed at the end of June 2026.
What the debt ratio shows
Debt and the debt-to-GDP ratio also measure different things. One is the amount owed; the other compares that amount with the economy’s annual output. A falling ratio does not mean the same percentage of debt has been repaid.
In Greece’s case, the latest table shows a decline in both the amount owed and its size relative to the economy. The country nevertheless remains at the top of the EU’s debt ranking.
Eurostat calculates the quarterly ratio using economic output over the preceding four quarters. The next quarterly release is scheduled for January 22, 2027.
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