Eurozone Debt Rises to 88.8% of GDP as Italy Nears Greece, France Hits 119.1%

Eurozone government debt rose to 88.8% of GDP in the second quarter from 87.3% a year earlier, Eurostat said Wednesday, as Italy's ratio climbed to within one point of Greece's and France's reached 119.1%. Greece remained the most indebted EU member at 140.8%, down 11.2 percentage points in a year on budget surpluses, while Italy stood at 139.9%, up 1.3 points in the quarter alone. France posted the third-highest ratio at 119.1%, a 3.7-point annual increase, as the yield on its 10-year bond rose above 5% for the first time since 2002. Eurozone governments owed about €14.4 trillion in cash terms. The wider EU's debt-to-GDP ratio rose to 82.9% from 81.4%, and its full-year 2025 deficit held at 3.1%, just above the bloc's 3% limit. Germany's ratio rose to 62.8% as its deficit widened to 2.9%. Moody's reviews France's rating on Friday, with economists expecting a downgrade.