To 119 billion euros: Germany's public deficit has indeed increased in 2025
Germany's public deficit has increased to 119.1 billion euros for 2025, surpassing earlier estimates by about 12 billion euros, with significant contributions from the federal government.
Germany's public deficit for the year 2025 has reached 119.1 billion euros, marking a significant increase from earlier estimates of 107 billion euros. This rise in deficit was revealed by the Federal Statistical Office, indicating a concerning trend in the nation's public finances. The increase in the deficit is attributed mainly to higher expenditures from the federal government, states, municipalities, and social security systems, which have all outpaced revenues.
The recent financial figures show that approximately 79.6 billion euros, or nearly two-thirds of the deficit, originated from federal spending. In comparison, the financing deficit for 2024 was slightly lower at 115.3 billion euros. This consistent financial shortfall reflects a persistent challenge for the German government as it struggles to maintain fiscal health within the constraints of the EU Stability and Growth Pact, which allows a deficit cap of 3% of the GDP.
Compared to other European countries like France, which has regularly exceeded the deficit ceiling, Germanyβs situation raises questions about its fiscal strategies and future budgets. With the current deficit amounting to 2.7% of Germany's GDP, concerns may grow regarding potential implications for economic stability and public investment in the coming years, especially in light of rising national and global economic pressures.