Finance Minister Lars Klingbeil of the SPD expressed optimism that the German government will eventually be able to reduce its national debt. According to Klingbeil, if the nation achieves a growth trajectory, there will be a renewed opportunity to repay the outstanding debt.
During his appearance on the dts Nachrichtenagentur on Wednesday, the minister presented the planned budget adjustments and financial strategy extending through 2030. The data revealed significant increases in national required spending: interest payments alone are projected to rise considerably, climbing from around €30 billion in 2025 to nearly €80 billion per year by 2030. Correspondingly, the total federal debt is expected to rise from €2.0 trillion to €2.7 trillion over the same period.
From the Finance Minister’s perspective, current high levels of borrowing are unavoidable given the “necessary structural reforms” needed to bring the country back to stability. He acknowledged the vast responsibility facing Germany, adding, “We will definitely start the repayment process again-the key is that we get onto a growth path”.
However, when questioned about the timeline for debt repayment-specifically if it could begin after 2030, the first year following the current financial plan-Klingbeil remained cautious. He stated that predicting future years was impossible due to unpredictable external factors, citing potential developments involving Iran or the outcome of the war in Ukraine, and therefore declined to provide specific financial projections.