Germany Plans Record USD600.3B Borrowing in 2026

2025-12-18 08:43:03

(MENAFN) Germany is set to raise an unprecedented €512 billion ($600.3 billion) next year through bond sales to fund modernization of its infrastructure and armed forces, according to the German Finance Agency, which oversees the government's debt and borrowing.

The agency intends to sell roughly €318 billion ($373 billion) in government bonds with maturities of up to 30 years via auction to the capital markets.

Additionally, the federal government will issue green federal bonds valued between €16 billion and €19 billion ($22 billion).

Next year will also see the debut of a 20-year federal bond, with new borrowing projected at €181.5 billion ($213 billion). “This will be the second-highest figure in the country's history,” the agency noted.

The total planned borrowing marks a record from the financial markets next year, aimed at financing critical investments.

In context, Germany borrowed €500 billion ($586 billion) in 2023 to address the fallout from the COVID-19 pandemic and Russia's war on Ukraine. Borrowing fell to €439 billion ($514.5 billion) in 2024 and €425 billion ($498 billion) this year.

While Germany retains its AAA credit rating, analysts warn that interest costs are expected to rise due to the elevated borrowing levels.

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