Germany’s Government Debt Has Reached a Record High!
According to preliminary data from the Federal Statistical Office, the total debt of public authorities to the non-public sector, including the federal government, states, municipalities and social security funds, increased by €26.3 billion compared with the previous quarter.
Germany’s government debt increased in the second quarter of 2026. According to preliminary data from the Federal Statistical Office, the total debt of public authorities to the non-public sector, including the federal government, states, municipalities and social security funds, increased by €26.3 billion compared with the first quarter. As a result, Germany’s total government debt rose by 1% to €2.7535 trillion. Federal government debt increased by €20.5 billion to €1.9071 trillion.
One of the main reasons for the increase was spending from special funds created for infrastructure and defense. Debt held by the Special Fund for Infrastructure and Climate Neutrality increased by 39.1% to €48.9 billion, while the Special Fund for the German Armed Forces saw its debt rise by 8.8% to €51.6 billion.
State-level debt also increased by 0.5% to €646.2 billion. Meanwhile, Germany’s economy performed better than expected in the second quarter of 2026. Economic institutes raised their average growth forecast for the country to 1.3%. The OECD also raised its forecast from 0.7% to 1.1%. However, rising government spending and new borrowing are increasing pressure on the budget deficit.