Urgent.News

What's breaking now, across thousands of outlets.

Business

Defizit: Sondervermögen lassen Staatsschulden um 26 Milliarden Euro steigen

Mit einem Sondervermögen will der Bund mehr in die Verteidigungsfähigkeit und in Infrastruktur investieren. Das hat spürbare Folgen für die Staatsverschuldung.

Defizit: Sondervermögen lassen Staatsschulden um 26 Milliarden Euro steigen

Berlin - Despite a stronger economy, Germany's national debt continued to rise in the second quarter, driven by spending on infrastructure and the military. The German states, regions, and municipalities collectively held 2753.5 billion euros in debt by the end of the period, according to the Federal Statistical Office, a 1.0 percent increase or 26.3 billion euros compared to the previous quarter.

The majority of the growth came from the federal government, which increased its debt by 20.5 billion euros or 1.1 percent to 1907.1 billion euros. This growth was mainly due to spending from two special funds: the "Infrastructure and Climate Neutrality Special Fund" increased by 13.8 billion euros, while the "Military Special Fund" rose by 4.2 billion euros.

The states owed 646.2 billion euros, a 0.5 percent increase, while municipalities saw a 1.5 percent increase to 200.2 billion euros. Social insurance liabilities declined minimally to 9.1 million euros. Baden-Württemberg had the highest percentage increase in debt at 3 percent, due to accelerated financing. Lowering was most pronounced in Niedersachsen, where most loans had already been taken in the first quarter, resulting in scheduled repayments in the spring.

Leading economic research institutes forecast a federal financing deficit of 4.1 percent for the current year, up from 3.0 percent last year, with a further increase to 4.7 percent by 2027. Despite the stronger economy, state debt continued to rise. Germany's economy grew last three quarters due to rising exports and government investment, leading the institutes to double their growth forecast for the current year from 0.6 to 1.3 percent and for 2027 from 0.9 to 1.1 percent.

Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at handelsblatt.com →

More in Business

More from Tuesday 29 September →