German municipal debt jumps 9.9% to 378.9 billion euros
Germany's towns and municipalities piled up debt at a faster pace in 2025, with borrowing up 9.9%. Debt per resident reached 4,907 euros, highest in Hesse and lowest in Brandenburg.
Symbolic image · Photo: André Karwath aka Aka / Wikimedia Commons, CC BY-SA 2.5 (cropped and resized)
Debt held by Germany's towns, municipalities and municipal associations rose 9.9% in 2025, after a 6.3% increase the year before, the Federal Statistical Office said on Thursday. Total debt stood at 378.9 billion euros at year-end, or 4,907 euros per resident, including core and off-budget accounts as well as stakes in funds, institutions and companies.
Core budgets drove the rise with a 15.5% increase, while off-budget entities grew 14.7% and holdings 4.5%. Municipal core and off-budget accounts had already posted a record deficit for the second year running in 2025.
The burden varies widely by region. Per-capita debt was highest in Hesse at 6,763 euros and Saarland at 6,408 euros, and lowest in Brandenburg at 2,733 euros. Debt rose in every state, most sharply in Lower Saxony (13.3%) and Baden-Wuerttemberg (13.1%), and least in Saarland (2.3%).