In order to stimulate spending, Germany will increase the amount of government bonds issued to a record 512 billion euros.

Germany will increase the issuance of federal bonds by one-fifth next year to a record 512 billion euros to fund a spending plan aimed at repairing aging infrastructure and modernizing the military. According to a statement released on Thursday, the fiscal agency responsible for managing government debt in Germany plans to issue approximately 318 billion euros of securities through auctions in the capital markets, and 176 billion euros through the money markets. In addition, green bonds worth 16 to 19 billion euros will also be issued. This total is higher than the 425 billion euros in 2025 and exceeds the historical peak of around 500 billion euros in 2023. Officials plan to conduct a total of four joint underwritings next year. The government led by Chancellor Merkel is trying to revive the largest economy in Europe, which has been growing weakly since the pandemic. The government has pledged to invest 500 billion euros in infrastructure funds over the next decade.