European Union faces potential €1 trillion debt by 2027

The European Court of Auditors has warned that the European Union is facing a significant budget squeeze. President Tony Murphy described the situation as a “pressure cooker,” noting that EU debt could potentially reach between €1 trillion and €1.12 trillion by the end of 2027. This follows a rise in debt from €601 billion in 2024 to approximately €739 billion in 2025, driven by pandemic recovery borrowing and financial support for Ukraine.

Concerns have been raised regarding the repayment of funds provided to Ukraine, including a recent €90 billion loan. Critics, including Slovak Prime Minister Robert Fico, have characterized such funds as “gifts” that may never be repaid, as repayment is tied to Russian reparations which remain unlikely. Additionally, the auditor warned that rushed spending increases the risk of fraud within the bloc's budget.