For 2025, the Treasury plans to issue €60.000 million of net debt, which is 9% more than the €55.000 million in 2024. The increase, as assured by the Minister of Economy, Carlos Cuerpo, after the Council of Ministers, aims to “provide sufficient flexibility to respond to the disaster of the DANA” and to assist “for as long as necessary to those affected.”
In gross terms, this year the Treasury will need to turn to the markets for €278.448 million, a 7.4% increase compared to 2024. These operations include both the issuance of net debt and refinancing. The challenges lie in navigating uncertainty and expanding the investor base to compensate for the ECB’s withdrawal from debt purchases. For now, foreigners are already buying 40% of Spanish debt. The cost of the debt issued throughout 2024 has been 3.16%, down from 3.44% a year earlier, thanks to interest rate cuts. However, the overall live debt now generates an average interest rate of 2.21%, compared to 1.64% at the end of 2021, before interest rates began to rise.
In 2019, the first full year of Pedro Sánchez’s government, Spain issued debt of €20.000 million. In 2020, during the pandemic lockdown, Spain placed debt of €109.000 million, which was reduced to €70.000 million in 2021 and 2022. In 2023, new debt of €65.000 million was issued, and in the past 2024, another €55.000 million were issued, resulting in a total debt increase of 3.4%, reaching 108% of GDP (to achieve a GDP growth of 3%). In 2025, the new debt will add another €60.000 million, three times the new debt that Spain issued six years ago.
Spain to issue debt amounting to €278.000 million in 2025, 7.4% increase on 2024, new debt to total €60.000 million
debt
