Sunday, July 6, 2025

EU Member Country Debt 7-6-25

The average government debt-to-GDP ratio for EU member countries is around 81.0%. This ratio represents the total amount of money that EU governments owe compared to the total value of goods and services produced within the EU.  

Key Details:

EU Average: The most recent data indicates the EU's government debt-to-GDP ratio is around 81.0%, according to the European Commission

Euro Area: The Euro area, which consists of countries that use the euro as their currency, has a slightly higher average debt-to-GDP ratio, around 87.4%. 

Variations Among Countries: There is significant variation among individual EU member states. Some countries have debt levels well below 60% of GDP, while others, like Greece, Italy, and Portugal, have ratios exceeding 100%. 

Factors Influencing Debt: Factors like government spending, revenue, economic growth, and interest rates all influence a country's debt-to-GDP ratio. 

Sustainability: A high debt-to-GDP ratio can raise concerns about a country's ability to manage its debt and meet its financial obligations. 

Stability and Growth Pact: The European Union's Stability and Growth Pact sets a guideline for member states, aiming for a general government gross debt of no more than 60% of GDP. 

what is the average debt to gdp ratio for EU member countries

Based on the information available, the average government debt to GDP ratio for EU member countries was 81.0% at the end of the fourth quarter of 2024. 

Here's some additional context:

·       The Euro Area (countries using the Euro) had a slightly higher average debt to GDP ratio at 87.4% at the end of the fourth quarter of 2024.

·       There's a significant variation among individual EU member states, with ratios ranging from 23.6% in Estonia to 153.6% in Greece at the end of 2024.

·       The EU has a Stability and Growth Pact (SGP) which encourages member states to keep their deficit below 3% and debt below 60% of GDP. 

This data is based on information published by Eurostat, the statistical office of the European Union. 

https://www.google.com/search?q=what+is+the+average+debt+to+gdp+ratio+for+EU+member+countries

EU Member Country Debt to GDP

In the third quarter of 2024, Greece (163.6%), Italy (137.0%), and France (112.2%) had the highest government debt as a percentage of their GDP among EU member countries. Conversely, Estonia (23.8%), Bulgaria (22.1%), and Luxembourg (26.8%) had the lowest ratios. Here's a more detailed breakdown:

Countries with High Debt-to-GDP Ratios (Q3 2024):

·       Greece: 163.6%

·       Italy: 137.0%

·       France: 112.2%

·       Belgium: 108.0%

·       Spain: 105.3%

·       Portugal: 100.6% 

Countries with Low Debt-to-GDP Ratios (Q3 2024):

·       Estonia: 23.8%

·       Bulgaria: 22.1%

·       Luxembourg: 26.8%

·       Denmark: 31.1%

·       Sweden: 33.5%

·       Lithuania: 38.2% 

It's important to note that these are snapshots in time and debt levels can fluctuate. 

EU member countries listed by debt to GDP

Based on the provided search results, here is a list of EU member countries ranked by their government debt to GDP ratio (from highest to lowest), using data primarily from the 3rd and 4th quarters of 2024:

Highest Debt to GDP Ratios (End of Q4 2024 or Q3 2024 if Q4 unavailable):

1.    Greece: 153.6% (158.2% in Q3 2024)

2.    Italy: 135.3% (136.3% in Q3 2024)

3.    France: 113.0% (113.8% in Q3 2024)

4.    Belgium: 104.7% (105.6% in Q3 2024)

5.    Spain: 101.8% (104.3% in Q3 2024)

6.    Portugal: 97.5% (Q3 2024)

7.    Austria: 83.2% (Q3 2024)

8.    Finland: 81.5% (Q3 2024)

9.    Hungary: 76.0% (Q3 2024)

10. Cyprus: 69.7% (Q3 2024)

11. Slovenia: 66.9% (Q3 2024)

12. Germany: 62.4% (Q3 2024)

13. Slovakia: 60.3% (Q3 2024) 

Lowest Debt to GDP Ratios (End of Q4 2024):

1.    Estonia: 23.6%

2.    Bulgaria: 24.1%

3.    Luxembourg: 26.3%

4.    Denmark: 31.1%

5.    Sweden: 33.5%

6.    Lithuania: 38.2% 

Additional Information:

·       The Euro area as a whole had a government debt to GDP ratio of 87.4% at the end of the fourth quarter of 2024.

·       The European Union as a whole had a government debt to GDP ratio of 81.0% at the end of the fourth quarter of 2024.

·       The average government debt to GDP in the EU was approximately 76.69% from 2000 to 2024. 

https://www.google.com/search?q=EU+member+countries+listed+by+debt+to+gdp

The average interest rate that EU countries pay on their government debt varies, but it is influenced by the European Central Bank (ECB)'s key interest rate, which currently stands at 2.15%.

The average interest rate on U.S. government debt is currently around 3.28%.

Comments

Lowering Debt to GDP saves interest costs. Most EU Member Countries have a reasonable Debt to GDP, except Greece and Italy.  France, Belgium and Spain need to lower their Debt to GDP to under 100%. All EU Member Countries need to increase Investment in their Private Sector Economies and lower their taxes.

Norb Leahy, Dunwoody GA Tea Party Leader

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