Debt of the public surpasses previous high point - Federal borrowing surges to unprecedented peak
Germany's public debt has reached a record high of approximately €2.51 trillion at the end of 2024, marking a 2.6% increase compared to 2023. On a per capita basis, this corresponds to over €30,000 per person, an increase of about €669 from the previous year.
The Breakdown of Public Debt
The breakdown by government levels is as follows:
- The federal government holds the largest share, with liabilities rising to around €1.73 trillion.
- Debt levels also increased at the state (Länder) and municipal levels, with local governments experiencing particularly sharp rises.
- While specific figures for the social security system are not detailed in the available data, the overall increase reflects mounting fiscal pressures across all government segments.
Economic Challenges and Policy Changes
This year-on-year rise aligns with Germany’s economic challenges, including slow growth and weakening revenues, impacting all levels of government. The federal government’s 2026 draft budget projects a substantial funding gap of €172 billion between 2027 and 2029, partly due to planned corporate tax cuts and the commitment to compensate state and local governments for resultant revenue shortfalls.
Key Trends in Public Debt Across Government Levels
| Government Level | Debt Volume (End 2024) | Notable Trends | |---------------------|-----------------------|----------------------------------| | Federal Government | ~€1.73 trillion | Largest debtor, rising liabilities| | State Governments | Increasing | Debt levels increased | | Municipalities | Increasing sharply | Sharpest increases observed | | Social Security System | Not explicitly specified | Overall fiscal strain reflected |
The lowest debt was recorded among municipalities in Brandenburg, Thuringia, and Saxony, whereas the largest increase of 10.3% was observed among municipalities and municipal associations, where the sum rose to €170.5 billion. This was the fifth consecutive increase in public debt among municipalities and municipal associations.
The record high public debt and its breakdown illustrate the fiscal strains facing Germany’s public sector amid economic headwinds and policy changes. It is important to note that the non-public sector, which includes credit institutions and private companies, is not part of the public debt.
[1] Federal Statistical Office (2025). Public debt statistics for Germany in 2024. Retrieved from https://www.destatis.de/EN/Themes/EconomyAndTransport/Finance/PublicFinances/FinancialAccounts/FinancialAccountsPublicSector/PublicDebt/PublicDebt.html [2] Federal Ministry of Finance (2025). Federal budget draft 2026. Retrieved from https://www.bundesfinanzministerium.de/Content/EN/Standardartikel/Artikel/2025/02/2026-draft-budget.html [3] Wiesbaden is not mentioned as a location with the highest per capita debt. [4] The overall debt of the social security system decreased by 73.9% to €10 million euros.
- The record high public debt of approximately €2.51 trillion in Germany can be attributed to various government levels, such as the federal government, states (Länder), municipalities, and the social security system, each experiencing notable increases in debt volume. This is in line with economic challenges faced by Germany, including slow growth and weakening revenues, impacting all levels of government.
- In the industry and finance sector, businesses and personal finance are closely watching the fiscal policies of the federal government, states, and municipalities in Germany, particularly as the federal government plans corporate tax cuts and compensates state and local governments for revenue shortfalls, potentially affecting the overall economic landscape.
