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Central BanksMedium•17 April 2026•

1 min read

Bundesbank Chief Warns of Unchecked Debt Growth as Germany Breaches EU Limits

Hungarian flag with a large green 'Ft' symbol, central bank buildings, gold Forint coins, and financial charts with arrows.

Key Facts

1Bundesbank President Joachim Nagel warned against the unchecked growth of German public debt.

2German national debt rose by €144 billion to €2.84 trillion, pushing the debt-to-GDP ratio to 63.5%.

Bundesbank President Joachim Nagel has issued a stark warning regarding the unchecked growth of German public debt, breaking traditional central bank neutrality. National debt in Europe's largest economy rose by €144 billion to reach €2.84 trillion, pushing the debt-to-GDP ratio to 63.5%. Nagel criticized the government's use of "creative accounting" to bypass the 60% limit set by the Maastricht Treaty. He expressed deep concerns over the erosion of middle-class purchasing power and the long-term inflationary risks posed by debt-fueled demand policies. This rare public rebuke from the central bank chief signals rising fiscal credibility concerns and political instability. Market analysts suggest these developments could weigh on German Bunds and the Euro as fiscal discipline remains under scrutiny.