Spain's public debt surges to record levels under Sánchez's eight-year tenure
Spain's sovereign debt has risen sharply since June 2018, reaching a historic high that now equals about a third of GDP, according to Eurostat data.
Data from Eurostat indicate that Spain's public debt has expanded by approximately 559 billion euros since Pedro Sánchez assumed office in June 2018, now representing roughly 32 % of the country's GDP and the largest debt stock in its history. The increase stems from pandemic-related fiscal stimulus, higher amortisation schedules and fresh issuance to cover budget gaps. Government spending rose by 184.720 billion euros, a 31.8 % jump between 2020 and 2025, pushing annual public outlays from 580.164 billion to 764.884 billion euros.
Interest costs are set to rise sharply, with 2026 payments estimated at 43.5 billion euros and potential escalation to about 72.3 billion euros by 2031 if borrowing costs remain elevated. The Treasury plans to issue roughly 285.677 billion euros in gross new debt this year, while amortisation of existing debt will require around 230 billion euros. Higher risk premiums on Spanish bonds, driven by broader European debt concerns, are adding pressure to financing conditions.
Why it matters
Rising debt and interest costs could limit Spain's ability to fund public services and investments.
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