Romania, the Most Expensive Public Debt in the EU – Impact on Pensions and Social Services

Romania has the highest public debt cost in the European Union, according to the latest data published by Eurostat — a situation that raises serious concerns about the funding of the pension system and social services for the elderly.

Whilst most EU member states have managed to keep their average government debt costs stable or slightly increased between 2024 and 2025, Romania sits at the top of the negative rankings, meaning the Romanian state pays the highest interest rates on its loans.

Romania's precarious financial situation may have direct consequences for the budget allocated to the pension system and elderly care services. High borrowing costs reduce the resources available for investment in public health, the development of care centres, and the improvement of conditions in residential care homes for older people.

For pensioners, this economic reality translates into the risk of smaller pension increases, or even the postponement of much-needed reforms to the social insurance system. Furthermore, funding for the modernisation of medical infrastructure serving older people may also be put at risk.

Economic experts warn that Romania's continued disadvantageous position among EU countries will limit its capacity to meet the growing needs of an ageing population, at a time when the number of older people in the country is steadily rising.