Germany’s debt is forecast to reach 78.25% of GDP by 2030

Germany’s federal and state Stability Council says the country’s debt and budget deficits are set to rise in the coming years.

It forecasts debt reaching 78.25% of economic output by 2030, up from 62.8% in 2025 and above the European limit of 60%.

The council expects the government deficit to reach 5.25% next year and remain at 4.5% in 2030, compared with a 3% limit.

Much of the borrowing is being used to repair infrastructure and upgrade the armed forces.

Finance Minister Lars Klingbeil says borrowing is needed to address delayed investment, while the government plans reforms to pensions and care and savings in the budget.

The council says the worsening forecasts and repeated breaches of the limits are a cause for concern.