Higher debt costs since the Ukraine war add 450 million euros to Spain's Treasury bill

The rise in interest rates on public debt since the start of the war in Ukraine has meant an additional cost of 450 million euros for Spain's Treasury, according to El País, which reported it on September 8, 2026. Despite this increase in yields on the sovereign debt market, the country has managed to contain the overall financial cost of its new issuances.

When central banks raise interest rates to fight inflation, the borrowing costs of governments rise automatically. The Treasury must offer higher returns on its bills and bonds to attract investors, which makes servicing public debt more expensive over the medium and long term. However, relative to the total volume of sovereign debt or Spain's gross domestic product (GDP), this increase of 450 million euros is limited, which confirms the resilience of the Treasury's financing strategy.

This performance rests on a perception of stability among international markets. According to data compiled by academic Aswath Damodaran of New York University (NYU Stern), updated as of January 1, 2026, Spain holds a sovereign credit rating of A3 from Moody's, along with a country risk premium of 1.55%. These indicators reflect sustained confidence that prevents an uncontrolled increase in the cost of debt issuance.

For citizens, containing these financing costs is key, since an out-of-control debt service drains resources that would otherwise go to public policies. The sovereign debt market will be watching the upcoming meeting of the European Central Bank (ECB), which takes place this Thursday and will be decisive in setting the direction of interest rates in the eurozone.