German net borrowing falls below budget as fiscal reforms take hold
Germany recorded 2025 net borrowing of 66.9 billion euros, significantly below the planned level. This marks the first full year under reformed fiscal rules.
Insights:
The German Finance Ministry reported on Friday that net borrowing for the core budget in 2025 totalled 66.9 billion euros, coming in 14.9 billion euros below the 81.8 billion euros originally budgeted. This fiscal outcome represents the first full year under the reformed fiscal rules approved by the German Parliament in March 2024, which were designed to enable record infrastructure investments and increase defence spending. Germany 
DEhas moved away from decades of fiscal conservatism with these reforms, aiming to revive a lagging economy while meeting more ambitious spending targets for NATO members.
DEhas moved away from decades of fiscal conservatism with these reforms, aiming to revive a lagging economy while meeting more ambitious spending targets for NATO members.
