Germany public debt projected to reach 78.25% of GDP by 2030

Germany's public debt is projected to rise significantly, reaching an estimated 78.25% of GDP by 2030, according to forecasts from the country's Stability Council. This marks a substantial increase from the 62.8% projected for 2025.

These figures indicate that Germany will exceed the fiscal limits established by the European Union's Maastricht Treaty, which sets a maximum debt-to-GDP ratio of 60% and an annual deficit limit of 3%. The fiscal deficit is expected to widen from 2.9% of GDP in 2025 to 5.25% the following year, eventually stabilizing around 4.5% by 2030.

Drivers for this increased spending include rising social expenditures, infrastructure investments, and defense requirements. The German government is utilizing a 500 billion euro infrastructure fund and relaxing borrowing restrictions to stimulate economic activity following a period of stagnation. Finance Minister Lars Klingbeil noted that these investments are intended to drive economic recovery.