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الاقتصادية
Germany shifts over a third of defense debt to current spending
An analysis by the Ifo Institute revealed that more than one-third of the additional debt Germany borrowed in 2025 under the defense and security expenditure exception was used for other purposes. Approximately 38.5% of the borrowing was allocated to finance expenses not directly related to defense and security. The total government expenditure covered by the exception amounted to €54.6 billion in 2024, then increased to €72.2 billion in 2025, with about €28.6 billion of the additional borrowing remaining unclear in terms of its designated purpose. The German government is facing criticism for using part of the fiscal space provided by the financial reform to fund current spending, rather than fully directing it to specific designated purposes. Meanwhile, the exception raises concerns about its potential exploitation to finance other budget items.
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