Poland is now among the fastest-indebting countries in the European Union. According to the latest Eurostat data, only Finland and Bulgaria recorded a larger increase in the public debt-to-GDP ratio in the first quarter of 2026.
Poland is now among the fastest-indebting countries in the European Union. According to the latest Eurostat data, only Finland and Bulgaria recorded a larger increase in their public debt-to-GDP ratios in the first quarter of 2026.
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At the same time, Poland’s Ministry of Finance reported that State Treasury debt exceeded 2.13 trillion zloty (€492 billion) at the end of May, an increase of almost 184 billion zloty (€42.5 billion) since the beginning of the year.
Preliminary estimates suggest that the debt rose by a further 53.7 billion zloty in June, bringing the total to nearly 2.19 trillion zloty (€505 billion).
Poland among Europe's leaders in debt growth
Eurostat data show that by the end of the first quarter, Poland's general government debt-to-GDP ratio had increased by 4.5 percentage points over the year. This was the third-highest increase in the European Union. Only Finland (up 5.5 percentage points) and Bulgaria (up 4.8 percentage points) recorded larger increases.
At the same time, Poland's overall debt level remains well below the EU average. At the end of the first quarter of 2026, it stood at 61.6% of GDP, compared with the EU average of around 82.9%. For comparison, Greece's debt exceeds 143.5% of GDP, Italy's is around 138.9%, and France's is more than 117.6%.
Poland's public debt, calculated under Eurostat's methodology, has therefore exceeded the 60% threshold which, under the Polish constitution, would oblige the government to introduce substantial spending cuts.
State Treasury debt exceeds 2.1 trillion zloty (€484 billion)
The Ministry of Finance's figures on State Treasury debt are even more striking. This debt is not identical to the EU's definition of public debt, but it makes up its largest component.
At the end of May 2026, State Treasury debt stood at 2.135 trillion zloty (€492 billion). In May alone, it increased by 46.8 billion zloty (€10.8 billion), and since the beginning of the year it has risen by 183.7 billion zloty (€42.4 billion), or 9.4%.
According to preliminary estimates from the Ministry of Finance, by the end of June the debt had already reached around 2.189 trillion zloty (€505 billion), implying a further monthly increase of more than 53 billion zloty (€12.2 billion).
The main driver of this growth has been the state budget's borrowing needs, linked to financing a large deficit and building up funds held in budgetary accounts.
Record borrowing needs
The scale of this year's bond issuance is unprecedented. In 2026, the Ministry of Finance plans to raise around 138.6 billion zloty (€32 billion) in net new financing, the highest figure in the history of Poland's public finances.
These substantial borrowing needs stem mainly from a record budget deficit and the need to refinance previously issued bonds. A significant share of the issuance is being carried out in advance to ensure the state has sufficient liquidity and to limit the risks associated with any deterioration in market conditions.
Who lends money to Poland?
The debt structure shows that Poland finances itself largely on the domestic market. At the end of May, around 80% of State Treasury debt was held domestically, while just under 20% consisted of external liabilities.
The biggest creditors remain domestic banks and the domestic non-bank sector, although almost 29% of the debt is also held by foreign investors.
The Ministry of Finance stresses that the share of debt denominated in foreign currencies remains below 20%, well under its strategic limit of 25%. This structure reduces the risk arising from exchange rate fluctuations.
Is there cause for concern?
The increase in debt alone does not automatically mean a deterioration in the state of public finances. The key factors are the pace of economic growth, the size of the deficit and the cost of servicing the debt.
For now, Poland's debt remains below the European Union average. At the same time, however, the pace at which it is growing is among the fastest in the bloc, meaning it will become increasingly challenging in the coming years to maintain stable public finances and keep debt-servicing costs under control.
Economists point out that if the high deficit persists for an extended period and economic growth weakens, the room for further increases in public spending will gradually shrink.
