Italy poised to surpass Greece with Europe's highest debt by 2026

Italy is projected to overtake Greece as the European Union member state with the highest debt-to-GDP ratio by 2026, according to government and International Monetary Fund estimates cited by La Repubblica.

The shift represents a historic reversal among the two countries most severely impacted by the eurozone debt crisis of the 2010s. Greece, subjected to strict bailout conditions and austerity measures, has gradually reduced its debt burden over the past decade. Italy's trajectory now points toward becoming the bloc's most indebted economy in relative terms.

The convergence of government and IMF forecasts suggests high confidence in the projection. Italy's persistent budget deficits, elevated public spending, and sluggish growth have compounded debt accumulation. The development presents fresh challenges for EU fiscal coordination mechanisms and may reignite debates over deficit rules and economic governance. Brussels maintains monitoring protocols for high-debt members, and Italy's projected status could trigger heightened scrutiny of budget submissions and spending plans.