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Germany's Public Debt Reaches €2.66 Trillion Amid Increased Spending

Published July 29, 2026 at 5:02 PM UTC

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Germany's public debt has risen to €2.66 trillion, marking a significant increase from €2.62 trillion in 2023. This €144 billion rise is largely attributed to heightened defense expenditures and substantial investments in infrastructure projects. The Federal Statistical Office reported that the debt-to-GDP ratio climbed to 63.5%, surpassing the Maastricht limit of 60% for the sixth consecutive year. The federal government's debt grew by €107 billion, while state and local governments saw increases of €19 billion and €25 billion, respectively. Social security funds also experienced a rise, with their debt more than doubling from €3 billion to €7 billion. These developments underscore the financial challenges Germany faces as it balances economic growth with fiscal responsibility.