Germany's debt-to-GDP ratio expected to rise to 78.25% in 2030

Germany’s Debt-to-GDP Projected to Rise to 78.25% by 2030, Stability Council Says

Germany’s Fiscal Outlook and Economic Recovery

Rising Debt Levels and Projections

BERLIN, Oct 12 (Reuters) - Germany's debt is expected to rise to reach 78.25% of gross domestic product in 2030, the country's stability council, which coordinates federal and state finances, said on Monday. 

Recent and Projected Debt Figures

• In 2025, the figure was only 62.8%.

EU Fiscal Rules and Compliance

• According to the EU's Maastricht Treaty, a country's budget deficit should not exceed 3% of GDP and the overall government debt should not exceed 60% of GDP.

Government Deficit and Borrowing Trends

Deficit Projections

• The government deficit is expected to rise from 2.9% last year to 5.25% next year. By 2030, the deficit is still expected to amount to 4.5% of economic output.

Factors Driving Borrowing

• Borrowing is rising thanks to a €500 billion ($559 billion) infrastructure fund and looser borrowing rules for defence spending.

Economic Recovery and Government Response

Statements from Finance Minister

• "After years of stagnation, an economic recovery is beginning to emerge," German Finance Minister Lars Klingbeil said after the meeting of the stability council. "Above all, it is our investments that are stimulating the economy and helping us after years of weak growth."

Currency Exchange Rate

($1 = 0.8949 euros)

Reporting Credits

(Reporting by Maria Martinez and Christian KraemerEditing by Ludwig Burger)