What is Government Debt?

Government debt is the money a country owes. It’s similar to a family taking a mortgage to buy a house or a student loan for school: big costs are spread out over time.

Why do governments borrow?

To build and invest: roads, schools, hospitals, clean energy.
To handle crises: disasters, recessions, pandemics.
To smooth timing: when tax income and spending don’t match.

How is debt measured?

Debt is shown in euros (€) and also as a share of the economy: the debt-to-GDP ratio.

Example: If a country produces €1 trillion in a year (GDP) and owes €500 billion, the debt-to-GDP ratio is 50%.

Why does debt matter?

Interest costs: more debt means more money spent on interest.
Policy room: high interest bills leave less for schools, healthcare, or tax cuts.
Stability: in the EU, debt levels are monitored to keep economies healthy and stable.

FAQ

Who do countries borrow from?
Mostly investors who buy government bonds: banks, pension funds, and sometimes other countries or institutions.

What is a “safe” level of debt?
There is no single magic number. The EU often uses 60% of GDPas a guideline, but actual levels differ by country and over time.

Where can I see current debt figures?
Use the EU map and click a country for a live estimate based on the latest reference dates.

Sources: Eurostat (government finance statistics) and national finance ministries.