Overview Of Eurostat Findings

New Eurostat data show that the apparent cost of gross government debt in Cyprus increased from 1.9% in 2024 to 2.0% in 2025. The figures form part of a broader analysis of government debt structures across the European Union, highlighting differences in borrowing costs and debt composition among member states.

Divergent National Approaches To Debt Structure

Eurostat noted that government debt profiles vary considerably across the EU in terms of maturity, financial instruments and ownership structures. At the same time, the currency composition of public debt remains relatively consistent in many member states.

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Currency Expression Trends In European Debt

More than 99.5% of government debt in the euro area is denominated in euros. Outside the eurozone, countries such as the Czech Republic and Sweden issue more than 90% of their public debt in national currencies. Bulgaria and Romania were the only EU member states where more than half of government debt was denominated in foreign currencies. The share reached 75% in Bulgaria, including 71% in euros, and 53% in Romania.

Other countries with relatively high levels of foreign-currency debt included Hungary (32%), Poland (26%) and Denmark (24%).

Debt Cost Trends And Country-Level Variances

Eurostat data show that the apparent cost of government debt either increased slightly or remained stable in most EU member states between 2024 and 2025. Romania recorded the highest borrowing cost at 5.2%, followed by Poland at 4.5%, the Czech Republic at 3.1%, and Italy at 3.0%. Cyprus reported an increase from 1.9% in 2024 to 2.0% in 2025, remaining below the levels recorded in several Central and Eastern European economies.

Lower debt costs were reported in Ireland (1.4%), Luxembourg (1.5%), the Netherlands (1.7%) and Germany (1.8%). France, Finland and Sweden each recorded a rate of 1.9%, slightly below Cyprus. Although borrowing costs increased in many countries, seven EU member states recorded declines during 2025. Estonia registered the largest decrease at 0.8 percentage points, followed by Sweden at 0.3 percentage points and Croatia at 0.2 percentage points. The figures highlight the differing financing conditions across the European Union, reflecting variations in debt structures, refinancing needs and broader market conditions.