Romania faces highest public‑debt cost in the EU as deficits deepen

Eurostat data show that Romania recorded the highest apparent cost of public debt among EU members in 2025, reaching 5.2 % of the debt stock—well above Poland (4.5 %), the Czech Republic (3.1 %) and Italy (3.0 %). The indicator measures the ratio of annual interest spending to the average debt stock, reflecting the price the state pays to finance its borrowing.

Despite the steep financing cost, Romania’s overall debt level remained moderate at about 59.3 % of GDP in early 2026, below the EU average of 81.7 %. The country posted a budget deficit of 7.9 % of GDP in 2025, the largest share in the union, driving a rapid increase in borrowing. Finance Ministry estimates show that gross financing needs for 2026 will total roughly 278.5 billion lei (13.6 % of GDP), including 127 billion lei of new debt to cover a projected 6.2 % deficit and 151 billion lei of refinancings. Interest payments rose to about 50.5 billion lei in 2025 and are expected to reach 60.8 billion lei in 2026 (around 3 % of GDP).

Analysts note that Romania lives on its revenues for only 311 days a year; the remaining 54 days are covered by additional borrowing. With the anticipated deficit and higher borrowing costs—roughly twice the rate Germany pays—the public debt is expected to reach 61.5 % of GDP by the end of 2026.