Rising levels of public debt in European countries constitute one of the most prominent risks facing the continent's economies, as these debts impose pressures on budgets, increase borrowing costs, and reduce the margin for spending on investment and social sectors.
Rising Debt Levels in Europe
Public debt levels in European countries recorded high rates during 2026. For example, French public debt reached approximately 119 percent of GDP by the end of the second quarter of the year, equivalent to about 3.6 trillion euros. The European Commission attributes this trend to tighter fiscal conditions and rising bond yields, alongside increased spending on defense and measures related to energy prices.
Low Economic Forecasts
The European Commission expects public debt in the eurozone to rise from 88.7 percent of GDP in 2025 to 90.2 percent in 2026, and then to approximately 91.2 percent in 2027. The International Monetary Fund also forecast eurozone growth to slow to 1.1 percent in 2026, while downgrading its forecast for French economic growth to 0.4 percent in 2026.
Protests and Social Pressures
The continuation of this trajectory raises concerns about broader impacts on growth and social stability, particularly with demonstrations erupting in European countries protesting living conditions and fiscal policies. IMF Managing Director Kristalina Georgieva stated that a key development is the rise in yields in advanced economies to levels not seen in decades.
Source: Anadolu Agency
Comments (0)