Poland is currently experiencing one of the most rapid increases in public debt within the European Union. According to the Ministry of Finance, the State Treasury debt reached 2.13 trillion zloty, or approximately €492 billion, by the end of May. This figure represents an increase of nearly 184 billion zloty, or €42.5 billion, since the start of 2026. Preliminary estimates for June suggest the debt continued to climb by another 53.7 billion zloty, pushing the total to roughly 2.19 trillion zloty, or €505 billion.
Data from Eurostat confirms that by the end of the first quarter, Poland’s general government debt-to-GDP ratio had risen by 4.5 percentage points over the preceding year. This growth rate is the third-highest in the EU, trailing only Finland, which saw a 5.5 percentage point increase, and Bulgaria, which recorded a 4.8 percentage point rise. Despite this rapid escalation, Poland’s overall debt level remains below the EU average. At the end of the first quarter of 2026, Poland’s debt stood at 61.6% of GDP, well beneath the EU average of approximately 82.9%. For comparison, other nations face significantly higher ratios, such as Greece at over 143.5%, Italy at around 138.9%, and France at more than 117.6%.
Under Eurostat methodology, Poland’s public debt has now surpassed the 60% threshold, a level that, according to the Polish constitution, would mandate the implementation of substantial spending cuts. While the Ministry of Finance’s specific metric for State Treasury debt differs from the EU’s broader definition of public debt, it remains the primary component of the country's fiscal obligations. In May 2026 alone, State Treasury debt grew by 46.8 billion zloty, or €10.8 billion, contributing to a 9.4% increase since the beginning of the year.
This surge is largely driven by the state budget's significant borrowing requirements, which are necessary to finance a large deficit and bolster funds held in budgetary accounts. The ministry is undertaking an unprecedented level of bond issuance, with plans to raise approximately 138.6 billion zloty, or €32 billion, in net new financing during 2026—the highest amount in the history of Poland’s public finances. Currently, the debt structure is heavily domestic, with about 80% of State Treasury debt held within Poland, primarily by domestic banks and the non-bank sector. Foreign investors hold nearly 29% of the total debt, with external liabilities accounting for just under 20%.
While rising debt does not automatically signal a fiscal crisis, economists warn that the rapid pace of growth makes it increasingly difficult to keep debt-servicing costs under control. If the current high deficit persists alongside weakening economic growth, the government's ability to maintain stable public finances and accommodate further public spending will likely diminish in the coming years.
