Households in northern and western Europe have the highest levels of debt in the European Union, challenging the common perception that southern Europeans are the continent’s biggest borrowers.
Eurostat data shows that EU household debt stood at 49.4% of gross domestic product in 2025, while the figure for the euro area was 50.7%. Both measures have declined every year since 2020, when household debt exceeded 60% of GDP.
Household debt includes mortgages, consumer loans and other borrowing. Measured against GDP, the figure provides a broad indication of how heavily households are borrowing compared with the size of the economy. It does not show how much individual families owe.
The European Commission has identified 55% of GDP as a level at which household borrowing can begin to pose a wider economic risk. High debt does not automatically signal a crisis, especially in countries with developed mortgage markets and high levels of home ownership. However, excessive borrowing can worsen economic downturns.
Seven EU countries have household debt above 55% of GDP, and all are located in northern or western Europe.
The Netherlands ranks first, with household debt equal to 93.5% of GDP. Denmark follows at 84.1%, while Sweden stands at 82.3%. Finland is fourth at 62.9%, followed by Luxembourg at 60.5% and France at 59.5%.
Belgium ranks seventh at 56.4%, while Cyprus has a ratio of 54.2% and Portugal 53.9%. Germany completes the top 10 at 49%.
The Netherlands’ high level of borrowing is closely linked to its housing market and government policies that make mortgage borrowing attractive. High pension savings and household financial wealth provide an important counterbalance.
Denmark’s household debt is also offset to a significant degree by substantial pension assets and property wealth, although its debt relative to disposable income remains among the highest in the EU.
Sweden’s high figure reflects heavy reliance on mortgages, with many households exposed to changes in interest rates. Finland’s debt is largely connected to housing loans and borrowing linked to housing companies.
Luxembourg’s high ratio is concentrated among borrowers, with mortgages accounting for most household debt, while a large share of households have no debt.
Southern European countries record much lower household debt ratios. Italy stands at 35.9% of GDP, Greece at 38% and Spain at 42.9%.
The figures highlight a sharp contrast between public and private finances. While several southern European governments carry some of the EU’s highest debt burdens, households in those countries generally borrow less than their northern counterparts.
