Staatsverschuldung: Deutsches Staatsdefizit steigt im ersten Halbjahr deutlich

The German state saw a significant rise in its deficit during the first six months of the year due to massive investments, with expenditures surpassing revenues by approximately €71.3 billion. The total state deficit was €36.6 billion higher than the previous year, equating to a deficit of 3.1% of the Gross Domestic Product. This deficit exceeded the EU's growth and stability pact limit of 3%.

A large part of the deficit was due to the Bundesregierung's financing deficit of €48.1 billion, which increased by €29.0 billion compared to the previous period. Tax expert Jens Boysen-Hogrefe from the Kiel Institute for World Economy (IfW) attributed the majority of the Bundesregierung's deficit to increased spending in defense and additional investments and subsidies funded by special funds.

Additionally, tax revenues were "rather modest." At the federal level, the deficit rose by €3.5 billion to €6.5 billion, while municipalities reduced their deficit by €1.5 billion to €14.8 billion. The social insurance sector recorded a deficit of €1.8 billion, following an increase in spending for statutory health and care insurance in the first half of 2025.

The Staatsverschuldung has gained attention due to the significant returns on German government bonds. The yields for 10-year German bonds reached their highest level in over 15 years at around 3.3%. These are unfavorable news for Finance Minister Lars Klingbeil, as it will increase the cost of borrowing and restrict the government's ability to spend on other areas like investments or social benefits.