Greece Set to Shed Title of Eurozone's Most Indebted Nation as Italy Takes Top Spot

Greece is connected people to relinquish its long-held presumption arsenic the eurozone's astir heavy indebted state this year, with Italy projected to overtake it arsenic indebtedness trajectories successful the 2 economies diverge sharply, elder Greek officials person told Reuters.

Greek nationalist indebtedness is forecast to autumn to astir 137 percent of GDP successful 2026, down from 145 percent successful 2025 — a simplification of 8 percent points successful a azygous year. 

Italy's debt, by contrast, is expected to emergence from 137.1 percent to 138.6 percent implicit the aforesaid period, according to Rome's latest multi-year fund plan.

"Greece volition not beryllium the astir indebted state successful the euro portion — from this year," 1 Greek authoritative said.

The updated figures volition beryllium included successful Greece's fiscal program owed to beryllium submitted to the European Commission aboriginal this month.

The milestone marks a striking reversal for a state that spent the amended portion of a decennary arsenic the awesome of European fiscal dysfunction, requiring 3 planetary bailouts totaling astir €280 billion. 

Since 2020, Greece has reduced its indebtedness ratio by much than 45 percent points — compared with astir 17 percent points for Italy implicit the aforesaid period.

Italy's indebtedness is projected to stabilize aft 2026, edging down somewhat to 138.5 percent successful 2027 earlier declining much steadily to 136.3 percent by 2029, according to its fund framework.

Greece is besides readying to repay astir €7 cardinal successful first-bailout loans up of docket aboriginal this year, a determination that would further accelerate the betterment successful its indebtedness illustration and reenforce the lawsuit for a recognition standing upgrade astatine S&P's adjacent reappraisal successful October.