Germany’s public debt rose by about 50 billion euros to 2.66 trillion euros by the end of last year, according to the Federal Statistical Office. FDP General Secretary Nicole Büttner blames Chancellor Friedrich Merz for effectively suspending the debt brake, warning that the country is moving toward financial insolvency. A significant portion of the new debt funds the special-purpose vehicle for the military, infrastructure, and climate protection, amounting to 32.2 billion euros, but current analyses say 95% of these funds were spent on consumption rather than investments in defense and climate. Büttner accuses the ruling coalition of burning taxpayers’ money on election gifts and patching budget gaps, while investments in core state tasks are neglected. The long-term consequences will fall on future generations, who will carry the debt and interest for decades with less room to respond to future challenges. The Free Democrats plan to challenge the debt policy legally and demand structural reforms, including tax cuts, reductions in energy taxes, abolition of the solidarity surcharge, corporate tax relief, and deregulation, alongside immediate reform programs for the economy.
← Atlas › News › Economy & Taxation