Germany’s Government Plans to Increase Debt by Approximately 850 Billion Euros by the End of the Current Legislative Period, According to a Report.
The German government is planning to take on a significant amount of debt in the coming years, with a projected increase of around 850 billion euros by the end of the current legislative period, according to a report by the Handelsblatt, citing the government’s 2025 budget and the 2029 financial planning outline. The planned debt will be used to modernize the country’s infrastructure, boost the economy and ensure the security of Germany.
Defense and civil protection spending are expected to rise significantly, reaching nearly 170 billion euros per year by 2029, thereby meeting the new 3.5 percent NATO target. For this year, the government plans to take on a debt of around 143 billion euros, with a net credit increase of 82 billion euros for the regular budget and 61.3 billion euros for the special funds for infrastructure and the federal armed forces.
By 2029, the government plans to take on a debt of 185.5 billion euros. Investments are expected to reach a new record high of over 115 billion euros in 2025, with the special fund for “Infrastructure and Climate Neutrality” playing a significant role in this increase.