The budget shortfall reached €127 billion last year, the highest since 2022, according to official statistics
Germany’s military spending shot up by over 23% to €39 billion ($45 billion) last year, pushing the budget deficit to the highest level in four years, the Federal Statistical Office has reported.
Following the escalation of the Ukraine conflict in 2022, Berlin began a military buildup, with defense expenditure projected to exceed €500 billion by 2029. The German government has stated it wants the country’s armed forces to be “war-ready” by then, citing a perceived Russian threat.
Moscow has repeatedly dismissed as “nonsense” allegations that it harbors aggressive plans against the European members of NATO.
In a press release published on Tuesday, the Federal Statistical Office estimated that Germany was €127.3 billion in the red in 2025, with all levels of government operating at a deficit. According to the analysis, the shortfall was €22.9 billion higher than in 2024.
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