Germany could lose AAA rating over record debt

Germany could lose its top AAA credit rating due to record government debt and weak economic growth, according to S&P Global Ratings.

It said if Germany’s economic performance remains significantly below forecasts, the country’s rating could come under threat, Caliber.Az reports, citing German media.

Germany’s Federal Statistical Office previously reported that the country’s government debt hit a new record in 2025, reaching €2.7 trillion.

Government spending is estimated at €629 billion next year, including €196.5 billion in new borrowing. This means nearly one in every three euros will be financed through borrowing, increasing the government’s interest burden.

Interest payments are expected to reach around €30 billion this year, €42 billion in 2027 and €81 billion by 2030.

“The problems [facing the economy] can only be solved through reforms, but we are currently losing time,” Veronika Grimm, a member of the German government’s Council of Economic Experts, told Bild.

Germany has been experiencing a prolonged economic crisis in recent years. It initially emerged from the COVID-19 pandemic and later worsened following the halt in Russian gas supplies and the conflict surrounding Iran.

By Bakhtiyar Abbasov