German government debt comes in at historic high of $2.6B

GENEVA

Germany’s government debt hit a record high of €2.4 billion ($2.63 billion) in the first quarter of 2023, official figures revealed on Wednesday.

According to the Federal Statistical Office (Destatis), the government debt increased 1.6% by end-March.

The increase in debt was mainly a result of “increased financing needs as a result of the current energy crisis related to Russia’s war of aggression against Ukraine,” the federal agency wrote on its website.

Some €200 billion ($219 billion) has been reserved for the so-called government gas price brake and for financial support to energy suppliers, it said.

According to the report, the increase in debt is mainly due to extra budgets created for this purpose, so-called special funds, for instance, the Economic Stabilization Fund for Energy, which was established in November.

Debt related to this special fund alone increased 73.3% from January to March from €22.2 billion ($24.3 billion) to a total of €52.4 billion ($57.3 billion).

Debt to the pandemic-era Corona Economic Stabilization Fund rose 1.2% to €53 billion ($58 billion). And for the first time, the extra budget of Germany’s armed forces, the Bundeswehr, also had liabilities of €802 million ($878 million).

• Bundeswehr
• COVID-19 pandemic
• Debt
• Energy Crisis
• Germany