Updated
Updated · Euronews · Jul 15
Luxembourg Tops 7 EU States Above 85% Corporate Debt Limit at 251.1% of GDP
Updated
Updated · Euronews · Jul 15

Luxembourg Tops 7 EU States Above 85% Corporate Debt Limit at 251.1% of GDP

3 articles · Updated · Euronews · Jul 15

Summary

  • Seven EU countries exceeded the European Commission’s 85% of GDP corporate-debt benchmark at end-2025, led by Luxembourg at 251.1%, ahead of Denmark at 115.4% and Sweden at 108.6%.
  • 70.1% was the EU-wide corporate-debt ratio and 71.6% in the eurozone—near 20-year lows—showing the outliers sit above a bloc-wide backdrop of relatively contained borrowing.
  • Luxembourg, the Netherlands, Cyprus and Belgium rank high largely because multinational holding and financing vehicles inflate cross-border intra-group debt recorded in official statistics.
  • France at 91.6%, along with Denmark and Sweden, stands out because much of the debt is considered genuine: France’s central bank flags broad corporate leverage, while Sweden’s is tied to commercial property.
  • Italy and Greece show the reverse pattern: despite public debt of 137% and 146% of GDP, their corporate debt was just 55.1% and 58.6%, underscoring how the ranking reflects financial-hub structures as much as business stress.

Insights

If high corporate debt is a statistical illusion for most EU nations, why is France's economy uniquely at risk?
Why do nations with the EU's highest public debt, like Italy and Greece, have the healthiest corporate balance sheets?
With new EU rules set to disrupt multinational banking, which economies are most exposed to the coming financial shock?