Germany’s total public debt rose again, reaching €2.75 trillion at the end of the second quarter of 2026. Preliminary data from the country’s Federal Statistical Office (Destatis) shows that liabilities of Europe’s largest economy increased by 1% over three months—more than €26 billion. The federal government made the largest contribution to the rise: its liabilities grew by over €20 billion and topped €1.9 trillion.
The main reason for the borrowing increase was spending through special purpose funds created outside the regular budget framework. The debt of the infrastructure and climate protection fund jumped most sharply—rising nearly 40% to approach €49 billion. Another large item was the special fund for Bundeswehr modernization, whose liabilities grew by almost 9% to exceed €51 billion. Regional burdens also rose: the debt of the federal states stood at €646 billion, while municipal and local government debt exceeded €200 billion.
The current rise in debt comes amid a budget deficit and prolonged difficulties in the industrial sector. Germany’s debt already hit a record at the end of last year, when liabilities approached €2.8 trillion due to the fallout from the energy crisis and sanctions pressures. Authorities are seeking to maintain strict fiscal discipline and adhere to the constitutional “debt brake.” Nevertheless, the need to cover defense orders, overhaul the energy system, and subsidize key industries continues to place a significant strain on public finances.
