Greece’s interest expenditure is expected to decline in the coming years despite the increase in borrowing costs internationally. That’s thanks to favorable economic and fiscal developments that will continue to reduce its public debt as a percentage of GDP, according to an analysis by credit rating agency Morningstar DBRS.
The agency examined the impact of higher government bond yields on interest expenditure and debt ratios in nine eurozone countries – Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal and Spain – through to 2030.
The analysis assumes that interest rates will remain at current levels for the rest of the decade and that financing costs in the coming years will be in line with the average yield on 10-year government bonds during the first seven months of 2026.
The analysis shows that Greece is the only one of the nine countries where interest expenditure in 2030 is expected to be 0.2 percentage points lower than in 2025.
By contrast, it is expected to increase in France (by 0.9 pp), Belgium (0.6 pp), Germany (0.4 pp), Austria and the Netherlands (0.3 pp), and Spain and Portugal (0.1 pp).
