Germany's debt agency expects new record for borrowing in 2027
TLT•Germany's federal borrowing is expected to exceed a record €525.5 billion in 2026 and rise further in 2027, driven by refinancing needs and growing requirements for special funds. The agency plans to publish its 2027 issuance forecast in December.
1. Borrowing needs rise
Germany's finance agency expects federal borrowing to reach a record €525.5 billion ($598 billion) in 2026 and rise further in 2027. Executive director Tammo Diemer said the agency will publish its 2027 issuance forecast in December.
2. Debt and budget needs
Germany must repay €309 billion of maturing debt this year. The agency cited rising refinancing needs, a slight increase in net borrowing for the federal budget and growing financing requirements for special funds.
3. Yields and credit rating
Diemer said the government is using increased fiscal flexibility for investment in infrastructure and defence. Germany retains its AAA rating, reaffirmed this month by Scope, while the 10-year Bund yield briefly rose above 3.5% this month, its highest level in 17 years.
