G7 Nations' Debt Interest Outpaces Defense Budgets

A recent analysis by credit‑rating agency Scope Ratings finds that interest payments on sovereign debt now exceed defence spending in most G7 economies. Italy’s debt service costs are about 193 % of its defence budget, the United States 121 %, the United Kingdom 105 % and France 103 %, while Germany is the only major exception, with interest outlays at roughly 35 % of its defence budget. The report also projects G7 debt‑to‑GDP ratios to rise to 135.2 % by 2029, approaching the 2020 peak, and warns that prolonged high interest rates heighten fiscal‑sustainability risks, especially amid upcoming elections. Scope’s executives note that the growing cost of debt service makes advanced economies increasingly vulnerable to bond‑yield fluctuations, and they anticipate record‑high interest‑cost burdens for France, Japan, China and the United States over the next five years.