Berlin. German Finance Minister Lars Klingbeil (SPD) believes the country can eventually reduce its national debt. If Germany returns to a path of economic growth, he said, "there will naturally be an opportunity to repay that debt and pay back the borrowed funds." Klingbeil made the remarks in an interview with the dts news agency on Wednesday.
Germany's debt to hit €2.7 trillion by 2030 despite reform promises
Earlier, the minister had presented the government's approved budget framework and financial projections through 2030. According to the plans, federal interest payments alone will rise from around €30 billion in 2025 to nearly €80 billion annually by 2030. Over the same period, Germany's national debt is set to climb from €2.0 trillion to €2.7 trillion.
Klingbeil argued that there is currently no alternative to higher borrowing, given the "essential structural reforms" needed to modernize the country. "This is an enormous responsibility we bear, but of course we will begin repaying the debt again—what matters is that we get back on a growth trajectory first," he said.
When asked whether debt repayment could begin in 2031—the first year beyond the current federal financial plan—the finance minister declined to speculate. "We don't know what Iran will do, or whether the war in Ukraine will be over by then. These are all factors that play a role, which is why I'm very cautious about naming specific years," Klingbeil said.
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