Portugal among five euro states cutting debt costs

Portugal was one of five euro area countries to reduce the apparent cost of public debt in 2025, according to Eurostat data published on Monday, a relevant indicator for investors tracking sovereign funding conditions in the bloc.

Between 2024 and 2025, the average effective cost governments paid on public debt rose slightly or remained stable in most EU countries with available data. In the euro area, however, Portugal, Croatia, Estonia, Greece and Finland recorded declines. The biggest reductions were in Estonia, down 0.8 percentage points, and Croatia, down 0.2 points, while the other three countries posted falls of 0.1 points.

Among euro area countries, Italy had the highest apparent cost of gross public debt at 3%. Ireland had the lowest at 1.4%, followed by Luxembourg at 1.5%, the Netherlands at 1.7%, Germany at 1.8%, and France, Finland and Sweden at 1.9%.

Eurostat also said that by the end of 2025, all or almost all of central government gross debt in every euro area member state, in nominal value terms, was denominated in euros, with the share above 99.5%.

Originally published at Eco.pt