Bulgaria continues to top the European Union in terms of the lowest government debt relative to gross domestic product, according to the latest figures released by Eurostat. As of the end of the first quarter of 2025, Bulgaria’s government debt stood at just 23.9% of GDP - placing it firmly ahead of all other EU member states.

The countries following Bulgaria in the ranking are Estonia, with a debt-to-GDP ratio of 24.1%, Luxembourg at 26.1%, and Denmark at 29.9%. These numbers highlight the stark contrast between fiscally conservative member states and those carrying heavier debt burdens.

Across the EU, however, the overall trend is moving in the opposite direction. The average government debt-to-GDP ratio in the Union climbed to 81.8% in the first quarter of 2025, up from 81% in the previous quarter. Within the euro area, the situation is more pronounced, with the average reaching 88%, up from 87.4% at the end of 2024.

The most indebted countries remain largely unchanged. Greece continues to register the highest ratio at 152.5%, followed by Italy with 137.9% and France at 114.1%. Belgium and Spain are also among the more indebted nations, with ratios of 106.8% and 103.5%, respectively.

Eurostat’s breakdown of the debt composition shows that, as of the first quarter, 83.6% of EU government debt was held in the form of securities. Loans accounted for 13.9%, while 2.5% was in currency and deposits. In the euro area, the distribution was slightly different, with 84.2% in securities, 13.3% in loans, and 2.6% in currency and deposits.

Compared to the previous quarter, 16 EU member states reported a rise in their debt-to-GDP ratio, while 10 saw a decline. Bulgaria was among the countries that recorded an improvement, with a reduction of 0.2 percentage points. However, in year-on-year terms, Bulgaria’s ratio rose by 1.5 percentage points compared to the same period in 2024.

Despite this annual increase, Bulgaria’s performance underscores the country’s long-standing reputation for sound fiscal management. Eurostat’s data reaffirms Bulgaria’s position as one of the most disciplined and conservative countries in the EU in terms of public finance.