Finances: Court of Auditors: "Leave path to debt trap"
After the summer break, Parliament is returning to its daily work routine, starting with a budget week. The official financial controllers are issuing a fundamental warning to the Federal Government.
The German Federal Court of Auditors has warned that the government's debt trajectory is unsustainable ahead of budget talks in the Bundestag. The court criticised the government's increasing reliance on debt, which it says will lead to higher interest payments and reduced fiscal space. The 2027 budget draft, to be introduced by Finance Minister Lars Klingbeil, foresees spending of 555.4 billion euros and net borrowing of 118.7 billion euros.
The court warned that if current trends continue, the government's debt could reach 3 trillion euros by 2030.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
