In 2023, the volume of state guarantees in the EU decreased
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According to the Eurostat report published on 31 January 2025, the level of public guarantees has decreased in most EU countries. In previous years, it had risen sharply due to the COVID-19 pandemic and then the energy crisis caused by Russia's war against Ukraine. However, in 2023, the trend reversed and the volume of state guarantees issued started to decrease.
The Netherlands was the leader in terms of state guarantees, where they reached 30.4 per cent of GDP. Finland and Italy also showed high figures - 17.9% and 15.3% respectively. In Germany, the level of guarantees amounted to 14.6 per cent of GDP, and in France - 13.5 per cent. At the opposite end of the ranking were Ireland, Bulgaria, the Czech Republic and Slovakia, where state guarantees did not exceed 1 per cent of GDP.
Another important indicator was the debt burden of state-owned companies, which are not formally part of the public finance structure but have significant liabilities. In Germany, such debts reached 86.5 per cent of GDP, the highest among EU countries. In the Netherlands it was 79.5 per cent and in Greece 71.7 per cent. The lowest level of public corporate debt was recorded in Slovakia (3.7 per cent of GDP), Spain (4.1 per cent) and Cyprus (8.4 per cent).
Public sector non-performing loans (NPLs) remain relatively low across the EU, but in Cyprus they stood at 11.8 per cent of GDP, the highest among the Union's countries. In Croatia the figure reached 0.9 per cent of GDP and in Spain 0.5 per cent. In the remaining countries, the level of bad loans was negligible or virtually zero.
Another risk factor is debt obligations related to public-private partnerships (PPPs), especially in the infrastructure sector. While there were no such liabilities in nine EU countries, they reached 1.4 per cent of GDP in Portugal, 1.1 per cent in Slovakia and 0.7 per cent in Latvia.
Eurostat data show that despite the overall decline in the level of public guarantees, the EU's fiscal situation remains fragile. High liabilities of public corporations, bad loans and hidden PPP debts may put additional pressure on public budgets in the coming years.
