EU debt interest vs schools and hospitals: 2025 explained

This article is written in simple language so students and general readers can follow.

What this article shows

In 2025, many EU governments spend a lot of money paying interest on their public debt. But they also spend huge amounts on schools and hospitals. This article compares those three areas — interest, education, and healthcare — to see which countries spend more on debt and which invest more in people.

Per-country breakdown (latest data)

The table below shows spending in billions of euros and per person. Data are mostly from 2024, because 2025 figures are not fully available yet.

Top 3 countries by interest burden (per person)

• Italy: About €1,440 per person. Italy spent ~€85 billion on interest in 2024, nearly the same as on all education nationwide.
• Belgium: Around €1,200 per person. Belgium’s interest bill is rising because of high debt and higher rates.
• France: About €870 per person. France paid ~€59 billion in 2024. The national auditor warns it could pass €100 billion a year by 2029.

Note: Ireland also pays close to €900 per person, but total interest spending is smaller.

Where interest eats into social spending

In some high-debt countries, debt service takes away money that could go to schools or hospitals:

• Italy: Interest (~€85 bn) was slightly higher than the education budget (~€80 bn). This is rare in Europe.
• Greece: Interest (~€7 bn) is close to education (~€8 bn) and healthcare (~€10 bn). It used to be worse but is now slowly improving.
• Portugal: Interest (~€7 bn) is about half of the education budget and ~40% of the health budget. Debt is still over 110% of GDP.

Countries that invest more in people

Other EU countries spend far more on social services than on debt:

• Nordic countries: Sweden, Denmark, and Finland spend many times more on schools and hospitals than on debt. Sweden spends ~14% of its budget on education and 19% on health, but less than 1% on interest.
• Germany: Health (~€436 bn) is nearly 20× its interest bill (~€25 bn). Education is almost 8× interest costs.
• Luxembourg: Very low debt, very high spending on people. Over €10,000 per person goes to health and education combined, while interest is tiny.

FAQ

Does Italy spend more on debt interest than on education?

Yes, almost. In 2024 Italy spent about €85 bn on interest and €80 bn on education — interest was slightly higher.

Do any EU countries spend more on interest than on healthcare?

No. Even in Italy and Greece, health spending is still larger than interest. But in those countries, interest is two-thirds or more of the health budget.

Which EU country has the biggest interest burden?

Italy. Its interest costs are about 3.9% of GDP — the highest in the EU. Greece follows at around 3%.

Who benefits from low interest burdens?

Citizens in countries like Sweden, Denmark, Germany, and Luxembourg. These countries spend most of their tax money on hospitals, schools, and services, not on debt.

Sources: Eurostat COFOG (government expenditure by function), European Commission, IMF, Reuters, DBRS. Figures mostly for 2024, shown in euros per person where possible.