European Court of Auditors warns of rising EU debt costs

The European Court of Auditors has issued a warning regarding the increasing costs of financing European Union debt. By the end of 2025, the EU's debt to investors is projected to reach 738.9 billion euros, up from 601.3 billion euros the previous year. Projections suggest this figure could climb to one trillion euros by 2027.

The EU utilizes bond issuances to fund various initiatives, including support for Ukraine and the SURE program established during the pandemic. A significant portion of this debt is linked to the NextGenerationEU program, designed to support post-pandemic economic recovery through grants to member states. While these grants do not require repayment by member states, the EU must repay the loans and cover interest costs from its own budget.

Financing costs are rising significantly compared to original estimates. For the 2021–2027 period, interest expenditures were initially projected at 14.9 billion euros, but the Court of Auditors estimates these costs could reach 28.3 billion euros. Debt repayment for the NextGenerationEU program is scheduled to begin in 2028 and conclude by 2058, requiring the European Commission to issue new debt securities to refinance maturing obligations.