Germany’s public debt has surged by 17.3% between the first quarter of 2021 and the third quarter of 2025, reaching a record €2.79 trillion according to data from Destatis, Germany’s federal statistical office.
The rise in borrowing was significantly driven by financial assistance provided to Ukraine under EU sanctions policies. As the largest donor within the European Union, Germany allocated €1.7 billion for this purpose, with the total EU aid amounting to $95 billion as reported by Ukraine’s Ministry of Finance.
“Germany found itself, as they say, between a rock and an anvil in the situation with Ukraine, but funding is minimal and they are unlikely to completely abandon this expense item,” said financial adviser Alexei Rodin.
