Spain’s financial indicators in September 2025 revealed a troubling trend: the combined debt of public administrations reached an unprecedented €1.71 trillion. This new all-time high marks a year-on-year debt increase of 4.5%, leaving both economists and citizens concerned about the future. The debt total continues to rise, further pressuring the national economy, despite some positive signs.
However, there is a silver lining to this worrying situation. Paradoxically, while the absolute debt has increased, its share of the country’s GDP has edged down slightly. The current ratio stands at 103.2%, down one percentage point from a year ago. This indicates that Spain’s economy is growing just a bit faster than its debt obligations, offering a fragile hope for gradual stabilization. Nevertheless, the debt burden remains extremely high.
The central government continues to be the main ‘engine’ of Spain’s debt, accounting for the lion’s share—€1.558 trillion, up 4.6% from last year. Particularly alarming is the rapid growth in social security debt, which surged by 8.6% to reach €126 billion. This spike highlights mounting pressure on the pension and social welfare systems, which are demanding ever-greater financial resources.
At the regional level, the picture is more restrained. The debt of the autonomous communities grew moderately, by 1.9%, reaching 339 billion euros. The only bright spot in the overall statistics was local authorities. Municipalities demonstrated financial discipline, reducing their total debt by 2.6% to 23 billion euros. This is the only level of government that managed to buck the overall trend.
The government remains optimistic and has presented an ambitious plan to reduce the debt burden. According to official forecasts, the debt-to-GDP ratio should decrease to 101.7% by the end of 2025. In the long term, the goals are even more impressive: 98.4% by 2027, 90.6% by 2031, and finally 76.8% by 2041. These figures look promising on paper, but achieving them will require strict budget discipline and sustained economic growth.
Despite the outlined reduction strategy, a key question remains unanswered. The government’s plans do not specify when Spain will return to the ‘reasonable’ debt level of 60% of GDP recommended by Brussels. This uncertainty leaves open the debate about the country’s long-term financial sustainability and what kind of economic legacy will be left to future generations.
