Economists have warned of the threat of a large-scale budget crisis in Germany.
Leading German economists have warned of the risk of a large-scale budget crisis in Germany from 2028 due to record spending and the growing debt burden, Walt writes.
The reason was the Bundestag's budget committee's approval of the draft budget for 2027 with expenditures of up to 561 billion euros and new loans of 210 billion euros.
The head of the Leibniz Center, Achim Wembach, said that the situation from 2028 will be "worse than can be expected". He pointed out that the rate of debt service exceeds the rate of economic growth, and because of this the country cannot get out of the credit trap.
Kiel Institute expert, Jens Boisen-Hogerpa, called the trend "clearly negative" due to the aging of the population and rising debt service costs.
Germany's national debt exceeded 2.8 trillion euros. Defense spending in 2027 will rise from 82.2 billion euros to 109.7 billion euros, and debt service will rise 41.9 billion euros.