Greece's Public Debt Projected to Fall Below Italy's in 2026
Greece's public debt is projected to fall to about 137% of GDP in 2026, below Italy's expected 138.6%, according to senior officials and Italy's budget plan. This shift marks the end of Greece holding the euro zone's highest debt ratio for over two decades. Italy's debt is forecast to remain stable before declining in later years.
Substrate placeholder — needs reviewGreece's public debt is estimated to reduce to about 137% of gross domestic product in 2026 from 145% in 2025, positioning it below Italy's projected level and ending its status as the euro zone's most indebted country. ' The Japan Times reported these details in an article published on April 24, 2026. 6% in 2026, according to the country's multi-year budget plan, known as the DFP.
The plan was published on Thursday. 3% in 2029. Greece's new debt ratio estimate will be included in its multi-year fiscal plan, set for submission to the European Commission at the end of April 2026.
Since 2020, Greece's public debt has shrunk by more than 45 percentage points to 145% of GDP. Over the same period, Italy cut its public debt by 17 percentage points. Greece has held the highest public debt in the euro zone over the last two decades.
The country experienced a decade-long financial crisis and received three bailouts totaling about 280 billion euros. Greece plans to repay ahead of schedule loans worth 7 billion euros from its first bailout later in 2026. A view of Duomo Cathedral and the Porta Garibaldi business district in Milan, Italy, was captured on April 22, 2026.
The Japan Times article was written by Lefteris Papadimas and Giuseppe Fonte.
Key Facts
Story Timeline
6 events- 2026-04-24
The Japan Times published the article on Greece's and Italy's debt projections.
1 sourceThe Japan Times - 2026-04-23
Italy published its multi-year budget plan (DFP) projecting debt increases.
1 sourceThe Japan Times - 2026-04-22
A view of Duomo Cathedral and Porta Garibaldi business district in Milan was captured.
1 sourceREUTERS - End of April 2026
Greece to submit its new multi-year fiscal plan to the European Commission.
1 sourceThe Japan Times - Later in 2026
Greece plans to repay ahead of schedule 7 billion euros in loans from its first bailout.
1 sourceThe Japan Times - Since 2020
Greece's public debt has shrunk by more than 45 percentage points to 145% of GDP.
1 sourceThe Japan Times
Potential Impact
- 01
Greece's early bailout repayment could free up fiscal resources for growth initiatives.
- 02
Potential improvement in Greece's borrowing costs due to reduced debt ratio.
- 03
Increased scrutiny on Italy's fiscal policies as debt rises relative to peers.
- 04
Possible influence on European Commission reviews of national fiscal plans.
- 05
Euro zone-wide effects on stability perceptions from shifting debt leadership.
Transparency Panel
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