The President of the Federal Audit OfficeKay Scheller, has it Federal Government
in front of an escalating one Taking on debt warned. “Since current income cannot come close to covering the federal government’s expenses, a dangerous debt dynamic has arisen,” says Scheller in a statement. This must be “urgently contained.”
The federal cabinet wants to decide on key points for the 2027 federal budget and medium-term financial planning next week. The federal government has to plug billions in gaps. The Special assets for the modernization of the infrastructure and for defense run outside the core budget.
2.7 trillion euros in debt by 2029
Scheller spoke of enormous debt dynamics. In the 2026 federal budget and in the special funds, almost every third euro is financed by loans, he said. According to current financial planning, the federal government wants to take out a total of more than 800 billion euros in new loans from 2025 to 2029. The federal government’s debt would then amount to 2.7 trillion euros. Interest expenses are expected to double to 66.5 billion euros in the same period.
The federal government is structurally living beyond its means, said Scheller. »This new debt is exacerbating the problems. Interest expenses in the federal budget are rising rapidly. The government must set the course for fundamental reforms.