Public sector debt rose by €50.8 billion in the fourth quarter of 2025. In total, the budgets of the federal government, states, municipalities, municipal associations, and social insurance funds, including all special funds, stood at €2,661.5 billion in debt, as Germany's Federal Statistical Office announced on Thursday.
That represents a 1.9% increase compared to the third quarter of 2025, and a 6% rise, or €151 billion, compared to the final quarter of 2024.
Federal government debt grew by 1.8% quarter-on-quarter to €1,840.6 billion, driven primarily by special funds. The Bundeswehr special fund increased its debt by 29.4% to €43 billion, while the special fund for infrastructure and climate neutrality stood at €24.3 billion.
State-level debt rose 1.4% between Q3 and Q4 2025, reaching €624.6 billion. Only three states reduced their debt. Mecklenburg-Vorpommern recorded the sharpest decline at -3.9%, followed by Thuringia and Saxony-Anhalt, each down 0.1%.
Municipal and local authority debt climbed 5.3% to €196.3 billion, largely because local reserves had been depleted, forcing communities to take on new borrowing. Social insurance debt fell 2.5% within the quarter to €9.4 million.
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