Spain records 2.7% deficit and reduces its debt to 103.5% of GDP
The country maintains the fifth highest debt ratio in the eurozone in the first three months of the year
Spain recorded a deficit of 2.7% and reduced its debt to 103.5% of GDP in the first three months of 2025. Data published by the European statistical office (Eurostat) shows that the deficit in the country fell by 0.4% compared to the previous three months and that public debt also fell by 2.8%, although it remains the fifth largest of the eurozone countries.
Spain is getting closer to the fiscal targets set by Brussels - to keep the deficit below 3% and the debt at 60% of GDP. The average debt of the euro countries grew to 88% of GDP.
The highest debts in the eurozone are in Greece (152.5%), Italy (137.9%), France (114.1%), Belgium (106.8%) and Spain (103.5%). In June last year, the European Commission opened infringement proceedings against seven countries - Belgium, France, Italy, Hungary, Malta, Poland and Slovakia - on the grounds that they were experiencing significant fiscal imbalances. This was not the case for Spain. Although it closed 2024 with a deficit of 3.6%, the EU pointed out that this was a "temporary" figure, which would be reduced to 3% "without further action being necessary".
In the case of France, Emmanuel Macron's government has already begun to take measures and has announced a budget adjustment that will save almost 44 billion euros by freezing pensions, reducing public employment, cutting social spending and increasing productivity, among other measures.
The countries that will not have to make adjustments are those with the lowest debt ratios: Bulgaria (23.9%), Estonia (24.1%) and Luxembourg (26.1%). In total, 16 European countries recorded an increase in the debt ratio, while ten others reduced it. It remained stable in the Czech Republic.
In this complex financial context, the frugal countries - Sweden, Austria, Denmark - have rejected the budget plan of European Commission president Ursula von der Leyen for the 2028-2034 period, which implies increasing the contribution of member states from 1.13% of GDP to 1.26%. The bloc must reach Nato's 5% spending target, in addition to paying back loans from the Next Generation funds for recovery from the Covid-19 pandemic, which amount to some 30 billion euros a year.
