"Germany is effectively bankrupt. Germany is completely bankrupt and no one is telling you this," Alice Weidel, co-chair of the Alternative for Germany (AfD) party, said at a press conference earlier this month. This comment quickly attracted widespread attention, with many netizens praising, "Finally someone is telling the truth!" and "She is truly an iron lady!"
Deutsche Welle fact check result: Wrong
Not proposed for the first time
This is not the first time Weidel has used "bankruptcy" to describe Germany's financial situation. During the budget debate in the Bundestag in September last year, she criticized that the government was leading "the country to the point of no return of bankruptcy" and said that German Chancellor Mertz would be recorded in history as "the biggest bankrupt in the Federal Republic of Germany". A year later, she escalated her rhetoric further, asserting that Germany was “effectively bankrupt.”
At this press conference, when reporters asked if the United States, which has record high debt, was in a similar (bankruptcy) state, Weidel did not answer directly. This follow-up Q&A is rarely mentioned in relevant video clips or articles circulating on social media.
Federal Budget Committee rebuts
In response to Weidel's latest "Germany is bankrupt" theory, Lisa Paus, acting chairperson of the Budget Committee of the German Bundestag, recently published a video on her Instagram account to refute Weidel's statement. She said: "I have the data and I can say clearly: Germany is not bankrupt. Because bankruptcy means inability to pay, and Germany is paying normally every day: pensions, wages, funding for enterprises, subsidies for low-income families, etc."
The politician from the Green Party added that international rating agencies will also evaluate a country's debt repayment ability, and Germany still has the highest level of AAA sovereign credit rating.
However, Boss also admitted: "We do have debt. Currently, German debt accounts for 64.4% of gross domestic product (GDP). By comparison, the EU average debt ratio is 83%. Of course, we still have problems: for example, our interest expenses will soar to 81 billion euros per year by 2030; our local municipalities also ran a record fiscal deficit last year."
She finally emphasized: "But this is by no means a reason to spread fear and panic. Germany is not bankrupt. What Alice Weidel said is wrong."
Economist falsification
Economists interviewed by Deutsche Welle also believe that describing Germany's current financial situation as "bankrupt" is not consistent with the facts.
Monika Schnitzer, chairwoman of the German Council of Economic Experts ("Economic Five"), confirmed that a country with the highest sovereign credit rating and a debt ratio of about 65% is not "bankrupt."
The economics professor at the University of Munich pointed out: "There is absolutely no risk of insufficient payment capacity in Germany; the same applies to countries with much higher debt ratios (such as Japan over 200% and France about 115%), which can still collect taxes normally and in full."
How close is Germany to bankruptcy?
Björn Kauder, a senior researcher at the Cologne-based German Economic Institute (IW), explained to DW: "National bankruptcy occurs when a country no longer performs its obligations to repay its debts, that is, it is unable to pay the interest due or complete the agreed principal repayments."
The expert who specializes in fiscal and tax policy believes: "Germany is still quite far away from national bankruptcy. If Germany faces bankruptcy, it will be long overdue for many other European countries, such as France or Italy, whose debt problems are much more serious. The same will be true in the next few years."
How serious is Germany's debt problem?
Nonetheless, Caudle stressed: "Germany's current debt growth cannot continue forever." He observed: "Germany's public debt is currently increasing significantly. Especially due to the exceptions for the special fund for infrastructure and climate neutrality and defense spending, Germany's government debt will rise significantly in the next few years. Even so, the German government still has sufficient ability to act."
According to Weidel, co-chairman of the Alternative for Germany party, the main reason for Germany's "effective bankruptcy" is the "explosive growth of national debt." Schnitzer, chairman of the German Economic Experts Committee, said: "So far, Germany's debt has not grown explosively. The growth rate in several years has only been a few percentage points. In 2010, Germany's debt ratio once exceeded 80%."
Economists interviewed by Deutsche Welle believe that Germany's current debt ratio is still at a low level, whether in historical comparison or in horizontal comparison with international levels.
International institutions also hold similar views: The International Monetary Fund (IMF) warned in April this year that global public debt is showing a significant growth trend, with the debt of the United States and China growing most rapidly. The organization predicts that the debt of the two largest economies will surge to 142% and 127% of their GDP respectively by 2031. The IMF believes that compared with the United States and China, the development trend of the euro area is relatively stable. Specific to Germany: Although debt growth is also rising, the level is relatively moderate. It is expected that Germany's debt ratio will reach nearly 74% by 2031.
Economic growth prospects improve, but structural problems remain
In fact, the German economy is showing early signs of recovery. Data from the German Federal Statistics Office show that the German economy has achieved quarter-on-quarter growth for three consecutive quarters since the fourth quarter of 2025. Major economic research institutions have raised their economic growth forecasts for this year at the beginning of this month, and the growth rate is generally expected to be around 1.3%. Germany is on track to achieve its strongest GDP growth in four years, and business confidence is once again on the rise.
Some analysts believe that recent positive data indicate that the German economy seems to have hit bottom and that it is the general trend to return to the growth track. Schnitzer, chairman of Germany's "Five Economic Wise Men" expert committee, told Deutsche Welle: "The current growth is largely driven by government finances, and the problems that existed before are still unresolved."
Clemens Fuest, director of the Ifo Institute of Economics, told Deutsche Welle earlier this month that the positive data showed that Germany's "industrial core" was still intact. He said three-quarters of German manufacturing companies were still expanding, but warned that the recovery would be short-lived without larger-scale changes.
Kaudel, a financial expert at the German Economic Research Institute, also said frankly: "There is almost no self-sustaining economic recovery at present. As the corporate bankruptcy data shows, the situation in many industries is still severe."
The economist was referring to data from the German Federal Statistics Office this month showing that the number of corporate bankruptcies in Germany reached the highest level in 13 years in the first half of this year. At the same time, however, an entrepreneurial boom is taking off. According to statistics from the German Entrepreneurship Association, from January to June this year, the number of newly established start-up companies in Germany reached 3,053, a record high and an increase of 52% over the same period last year.
To sum up, although Germany's finances are facing challenges, the statement that "Germany is bankrupt" lacks factual evidence.
