German government to borrow more than $600B next year

The German federal government is planning to raise a record €512 billion ($600.3 billion) next year by selling bonds to modernize infrastructure and the armed forces, according to the German Finance Agency, which manages the German government's borrowing and debt.

The agency plans to offer approximately €318 billion ($373 billion) worth of German government bonds with maturities of up to 30 years to the capital market via auction.

In addition, the federal government will issue green federal bonds worth between €16 billion and €19 billion ($22 billion).

The federal government is preparing to issue a 20-year bond for the first time next year, planning new borrowing of €181.5 billion ($213 billion). This will be the second-highest figure in the country's history.

The total amount to be borrowed will be a record amount from the financial market next year to finance investments.

In 2023, the government borrowed €500 billion ($586 billion) to combat the consequences of the COVID-19 pandemic and Russia's war on Ukraine. This amount decreased to €439 billion ($514.5 billion) in 2024 and to €425 billion ($498 billion) this year.

While Germany maintains its highest credit rating at AAA, the government's interest costs are expected to increase due to the high level of borrowing.