German Municipal Debt Jumps 9.9% to €378.9 Billion in 2025
WIESBADEN – October 29, 2026 -- Integrated municipal debt in Germany rose 9.9% over the course of 2025 to €378.9 billion, or €4,907 per capita, according to a model calculation by the Federal and State Statistical Offices published by Destatis. The increase compares with 6.3% in the previous year.
The measure includes debt of municipal core budgets, off-budget entities and other public funds, institutions and companies in which municipalities hold direct or indirect stakes. Only debt owed to the non-public sector, such as banks and private companies, is counted.
Record deficits in core and off-budget entities drive the increase
Core municipal budgets increased debt by 15.5% and off-budget entities by 14.7%. Both posted record deficits for the second year running. Debt of municipal holdings in other public funds, institutions and companies grew by a slower 4.5%.