Greece emerged as “Europe’s champion” in reducing public debt during the first quarter of the year, according to official data released by Eurostat.

Public debt in Greece fell by 9.4 percentage points in the first quarter of 2026 compared with the same period in 2025, marking the strongest performance among the 27 European Union member states.

Debt declined to 143.5% of GDP, meaning that Greece has managed to improve its debt-to-GDP ratio by 69.4 percentage points in just five years, compared with the peak recorded during the pandemic, in the first quarter of 2021, when the country’s debt stood at 212.9% of the Greek economy.

This represents the fastest pace of debt reduction both at European level and in the history of member countries of the Organisation for Economic Co-operation and Development (OECD).

Following this development, Greece has significantly narrowed the gap separating it from other EU member states. Although it remains the country with the highest public debt in the EU, as a result of the bailout loans received during the memorandum era, it is now less than five percentage points away from Italy, where debt currently stands at 138.9% of GDP.

It is followed by France (117.6%), Belgium (109.1%) and Spain (101.6%). The Greek economic team estimates that the country will soon no longer have the highest debt level in the EU.

Eurostat: Greece leads Europe in public debt reduction

It is also noted that Greece’s public debt reduction is being achieved not only as a percentage of GDP but also in absolute terms, as debt fell by more than €6 billion in the first quarter of the year, reaching €360 billion, compared with €366 billion in March last year.

The decline in Greek debt comes at a time when most European countries are struggling to bring their public finances under control. According to Eurostat data, 19 EU member states recorded an increase in their debt-to-GDP ratio, resulting in the average ratio across the EU-27 rising by 1.5 percentage points.

Greece, by contrast, is among only eight countries where debt decreased, while achieving the strongest performance.

Government officials noted that reducing debt brings multiple benefits for the Greek economy and society, primarily by lowering the cost of servicing public borrowing and strengthening the country’s credibility among international investors.

As Prime Minister Kyriakos Mitsotakis has stressed, reducing debt represents the most significant achievement of the government’s economic policy, as new unsustainable burdens are no longer being passed on to future generations, unlike in previous decades.

“Lower public debt means fewer interest payments to service it and fewer burdens for future generations,” a source familiar with the government’s economic planning said.