Overview

• Germany's Bundesfinanzagentur aims to raise €380 billion in 2025, a reduction from the €438.5 billion issued in 2024, as part of a broader €900 billion debt-financed investment strategy.
• Seven-year federal bonds will be reintroduced in the second half of 2025, marking a return to this maturity offering after its discontinuation in 2024.
• The agency is exploring the issuance of 50-year bonds, though no final decision has been made, reflecting efforts to diversify maturity options and optimize funding profiles.
• Germany's debt-to-GDP ratio, already above the EU's 60% threshold at 63%, could reach nearly 75% by 2030, raising concerns about compliance with EU fiscal rules.
• A new accounting method will distribute bond interest costs evenly over their lifetimes, reducing annual reported expenses but offering no actual savings.