Spanish public debt has fallen below 100% of its GDP for the first time since February 2020, according to the Bank of Spain. In July 2026, the total debt of all public administrations stood at 99.9% of GDP, a decrease of 2.4 percentage points compared to the same period in the previous year. This marks a significant milestone for Spain, as the government, led by Prime Minister Pedro Sánchez, had aimed to cross this symbolic threshold of 100% before the end of 2026. Public debt in terms of volume was 1,744 billion euros in July, reflecting a gradual decline from its peak during the height of the Covid-19 pandemic. Spain's public debt had reached a high of 124.2% of GDP in March 2021, driven by the economic challenges posed by the pandemic. Since then, the country has experienced a steady decline in debt levels, aided by a strong economic recovery. This growth has been fueled by a surge in tourism, increased household consumption, and a rise in foreign investments. In the second quarter of 2026, Spain's GDP grew by 0.7%, nearly double the growth rate of the broader euro zone, despite ongoing economic challenges such as the impact of hostilities in the Middle East and rising inflation. Inflation in Spain has risen to 4.3% in August 2026, primarily due to a sharp increase in fuel prices, according to the National Institute of Statistics (INE). Despite this, the overall economic environment remains positive. The Spanish government is optimistic about future growth, projecting a 2.6% increase in GDP for 2026, following a 2.8% growth in 2025. This outlook contrasts with France, where public debt has risen to 117.5% of GDP, the highest in the euro zone after Greece and Italy. By the end of the first quarter of 2026, France's public debt reached 3,536.1 billion euros, highlighting the differing economic trajectories within the European Union.