Greece has achieved the most significant public debt reduction among European Union member states, according to Eurostat data released in April 2025. The country’s debt-to-GDP ratio dropped by 10.3 percentage points between the fourth quarter of 2023 and the same period in 2024—the steepest drop in the EU bloc.
By the end of 2024, Greece’s public debt stood at 153.6% of GDP, continuing a downward trajectory that began in mid-2021, when pandemic-related expenditures were at their peak. Cyprus closely followed Greece with a debt-to-GDP reduction of 8.6 percentage points. In contrast, the EU’s average debt ratio increased by 0.2 percentage points during the same period, with only 11 out of 27 member states recording an improvement.
Speaking from Washington, D.C., where he is attending IMF and World Bank meetings, Finance Minister Kyriakos Pierrakakis confirmed that Greece is planning to repay the loans from its first bailout program a full decade earlier—by 2031 instead of 2041.
“The IMF loans were repaid three years ago. We must also repay the loans from the first bailout memorandum, and we aim to do so ten years earlier,” said Pierrakakis, adding, “By reducing the debt, the primary surpluses we generate reach society faster and more effectively.”
Greece’s improving fiscal position has allowed the Greek government to introduce a targeted €1.1 billion package of relief and investment measures. These include:
-A permanent rebate of one month’s rent—up to €800 annually (or €1,850 combined for primary and student residences)—for tenants of primary and student housing. Approximately 1.28 million individuals are expected to benefit.
-A permanent €250 annual stipend for 1.44 million low-income pensioners, uninsured seniors, and individuals with disabilities. Eligibility is based on income and asset thresholds, with payments issued automatically each November.
-A €500 million increase in Greece’s Public Investment Program to support infrastructure and development projects nationwide.
In a statement, Greek Prime Minister Kyriakos Mitsotakis emphasized that Greece’s strong economic performance and primary surplus have made it possible to provide support to those who need it most:
“With everyone’s effort, we did much better than we expected. The [economic] overperformance is returning to society in a fair and targeted way.”
