Germany's mountain of debt is growing by 86 billion euros - financial experts see crucial problems for the federal budget.

Germany's mountain of debt is growing by 86 billion euros - financial experts see crucial problems for the federal budget.

According to a report from www.welt.de, the German state's mountain of debt grew by 86 billion euros in the first nine months of 2023. The statisticians at the Federal Statistical Office announced that the federal government, states, municipalities and municipal associations as well as social insurance companies are in the black with a total of 2,454.0 billion euros. Social security debt increased by 5.3 percent to 22.8 million euros. One of the reasons for the increase is the increased need for financing due to the energy crisis resulting from the Russian attack on Ukraine.

The increased national debt may have an impact on the market and the financial sector. The federal government's debt rose by 5.2 percent to 83.5 billion euros, which could potentially lead to higher interest rates and a deterioration in the state's creditworthiness. This, in turn, can impact bond markets and increase the cost of capital for companies. Additionally, increasing debt may cause the government to cut spending, which could negatively impact consumption and economic growth.

It is important to monitor and analyze the development of government debt in order to identify possible risks and opportunities for investors and companies. Increasing debt can lead to uncertainty in financial markets, while reducing debt can create confidence and have a positive impact on the economy.