The Federal Government would like to borrow 512 billion euros on the financial market next year. This will be used to finance investments, according to the finance agency responsible for federal debt management. This represents a record amount. Germany is a sought-after borrower due to its top AAA credit rating, and German government bonds are popular.
The previous record comes from 2023, when 476 billion euros were raised to combat the corona crisis and the consequences of the Russian war against Ukraine. In 2024, the amount fell to 439 billion euros under the budget management of the traffic light government2025 to 425 billion euros.
The proportion of New debt should amount to 181.5 billion euros. That would be the second highest value ever. In addition, expiring bonds must be paid. The government also has to raise billions for the federal government’s special funds for infrastructure and the military.
Money needed for planned special funds
“The German state wants to borrow more money from investors next year than ever before,” said expert Elmar Völker from Landesbank Baden-Württemberg (LBBW). “This news is coming Not surprising given the federal government’s budget plans, as the planned special debts for defense and infrastructure must be financed via the bond market.”
The finance agency wants to place conventional federal securities with terms of up to 30 years worth around 318 billion euros on the capital market. A further 176 billion euros are expected to come from the money market. So-called green federal securities worth 16 to 19 billion euros will also be issued. For the first time there will be a bond with a 20-year term.
