German municipal debt hits 378.9 billion euros, up 9.9% in 2025

National picture

German municipalities and municipal associations owed 378.9 billion euros at the end of 2025, a new high according to the Federal Statistical Office, which published the figures on Thursday, 29 October. Including debt from core budgets, extra budgets and public holdings in funds, facilities and companies, that amounts to 4,907 euros per head. The integrated municipal debt grew 9.9% in 2025, faster than the 6.3% recorded the year before. The office attributes the increase mainly to core and extra budgets, whose debt rose 15.5% and 14.7% respectively, as in the previous year. Both budgets posted a record deficit for a second year in a row, while debt in holdings grew 4.5%.

Core and outsourced budgets

The integrated figure goes beyond the core budgets, adding the debt of extra budgets and of public funds, facilities and companies in which municipalities hold a direct or indirect stake. The reports estimate that a municipality's core budget organises only about half of its economic spending. The rest sits in these outside bodies, which is why the integrated figure is the broader measure. The growth in core and extra budgets therefore drives the national headline rate.

Regional ranking

Hesse's municipalities carried the highest debt per head at the end of 2025, at 6,763 euros, overtaking the Saarland at 6,408 euros, which had led at the end of 2023.

Hesse6,763

Saarland6,408

Thuringia3,692

Saxony3,338

Brandenburg2,733

Hesse

6763 euros

Saarland

6408 euros

Thuringia

3692 euros

Saxony

3338 euros

Brandenburg

2733 euros

Data from the article text

Hesse's total municipal debt came to 42.5 billion euros, 7.4% more than in 2024, according to the Hessian statistical office. Of this, 58.5%, or 24.8 billion euros, was booked in outsourced entities such as energy supply and building management. Within Hesse, the highest integrated debt per head was 21,089 euros, while Biebergemünd in the Main-Kinzig district had the lowest at 56 euros. At the other end of the national ranking, Brandenburg had the lowest level at 2,733 euros per head, followed by Saxony at 3,338 euros and Thuringia at 3,692 euros.

Growth by state

Lower Saxony recorded the largest rise in integrated debt, 13.3%, followed by Baden-Württemberg at 13.1%. Lower Saxony's municipalities owe more than 41.4 billion euros, equivalent to 5,180 euros per head.

Lower Saxony13.3%

Baden-Württemberg13.1%

Thuringia2.9%

Saarland2.3%

Lower Saxony

13.3 %

Baden-Württemberg

13.1 %

Thuringia

2.9 %

Saarland

2.3 %

Data from the article text

The smallest increases came in the Saarland at 2.3% and Thuringia at 2.9%. Growth was recorded in every federal state. In the Saarland, the state took over further municipal loans under the 'Saarlandpakt', while Thuringia was the only state where core budget debt fell.