By the end of 2026, Italy is expected to surpass Greece as the eurozone’s most indebted country, marking a significant shift in financial standings. Greece's public debt is forecast to decrease from 145% of GDP in 2025 to approximately 137% in 2026. Conversely, Italy's public debt is anticipated to rise from 137.1% in 2025 to about 138.6% in 2026, as reported by multiple sources including senior officials in Athens.

Greece's ongoing recovery from a severe financial crisis, which necessitated three bailouts totaling approximately €280 billion, is attributed to this debt reduction. Additionally, Greece plans to repay €7 billion in loans from its first bailout ahead of schedule, reflecting a commitment to managing its fiscal responsibilities.

In contrast, Italy's financial outlook is challenged by various factors including slower growth rates and increased spending. The Italian government has acknowledged tight budgetary margins, exacerbated by higher defense expenditures and market volatility, particularly influenced by international conflicts.

Italy's position as the eurozone's most indebted country will symbolize a notable change, as Greece held this title for nearly two decades. The revised debt figures will be part of Greece's new fiscal plan, expected to be submitted to the European Commission shortly.

Greece's proactive measures and improved economic outlook illustrate how much it has managed to reduce its debt burden, while Italy now faces a period of fiscal strain. This transition reinforces the dynamic nature of economic conditions within the eurozone, challenging previous assumptions about national debt standings.