Hidden debts are putting a strain on German government finances”

Hidden debts are putting a strain on German government finances”

The official German national debt amounts to 2.62 trillion euros, as stated by the German Bundesbank. However, new studies by the European Center for Economic Research (ZEW) in collaboration with the Strube Foundation show that Germany's actual liability is 10 percent higher. This means that the country's liabilities for which it could potentially be held responsible are above this official value.

A significant increase in debt results primarily from the European Union's extensive borrowing during the pandemic. The authors of the study, Friedrich Heinemann from ZEW and the University of Heidelberg and Marc-Daniel Moessinger from the Baden-Württemberg Cooperative State University in Mannheim, estimate the German share of the EU debt at up to 262 billion euros. Much of this sum is not included in official national debt statistics. Nevertheless, the researchers emphasize the impact of this hidden debt on the fiscal space of member states.

Finance Minister Lindner from the FDP assures that with disciplined budget management, the debt ratio will be below 60 percent of gross domestic product in 2028. These statements come in the face of the real debt burden, which goes beyond the official figures and illustrates Germany's liability for the liabilities of other European countries.