
Internal documents from the Federal Ministry of Finance show a worrying development in German public finances: by 2030, the loan financing ratio is expected to almost double and the interest tax ratio is expected to rise massively to 18.4 percent.
AI-generated summary
The Federal Ministry of Finance has prepared internal forecasts for the development of national debt and interest burdens up to 2030.
Germany's debt is showing increasingly threatening consequences. This is proven by key figures compiled by the Federal Ministry of Finance (BMF) in an internal document.
Accordingly, the loan financing ratio – which indicates what proportion of the federal budget is financed with debt – will almost double by 2030. In 2025 it was 13.6 percent and in 2030 it is expected to reach 26.3 percent. The interest tax rate is developing even more dramatically. It indicates what proportion of its tax revenue the federal government has to pay for interest payments. The value was 7.7 percent last year, but according to the BMF list it will rise to 18.4 percent by 2030.

According to a report in the Financial Times, Starbucks is exploring a takeover of fast food chain Chipotle. Chipotle's market value is around $39 billion. However, a merger is considered unlikely due to the complexity.

The WTO is raising its growth forecast for global trade in goods from 1.9 to 3.9 percent. The main driver is the high demand for AI technologies, which compensates for disruptions caused by the Middle East conflict. Trade in services, on the other hand, is growing more slowly.

The World Trade Organization (WTO) has raised its growth forecast for global trade in goods in 2026 from 1.9 to 3.9 percent. The AI boom compensates for the negative effects of the Middle East conflict on supply chains.

Tech companies such as Broadcom, Oracle and SpaceX are seeking billions in financing from investors such as Apollo and Blackstone to cover the enormous demand for AI chips. Experts warn of high debt burdens and risks to cash flows in the event of delays.

Federal Minister of Economics Katherina Reiche (CDU) has significantly raised the federal government's economic forecast. GDP is expected to grow by 1.3 percent this year and 1.1 percent next year, driven by German exports.

The IG BCE union is demanding clarity from the RAG Foundation about a possible sale of its Evonik shares to BASF. In an internal letter, union representatives warn against quick decisions and emphasize the workforce's concerns about their jobs.