German debt to reach 78.25% of GDP by 2030

The German Stability Council expects the country's public debt-to-GDP ratio to rise to 78.25% by 2030, up from 62.8% in 2025. This increase is due to the creation of a 500 billion euro infrastructure fund and the easing of borrowing restrictions for defense spending. Additionally, the budget deficit is projected to increase to 5.25% next year, with public debt remaining above the limits set by European Union treaties, which cap it at 60% of GDP. This rise is attributed to the government's efforts to boost economic growth through increased investments, with the Finance Minister confirming that an economic recovery is beginning to take shape after years of recession.

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