Friday, November 7, 2025

Germany’s hidden €2.5 trillion debt bomb proves Europe’s economic foundation is far weaker than anyone admits – Citizen Watch Report

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Wonder why Germany is heading towards a crisis similar to Greece 13 years ago? Because the real government debt is 130% of GDP not 65%

During the weekend a friend of mine claimed how German debt is still “low” and the country has room for to absorb ~900bn$ of spending that will mostly be channeled to the military. However it couldn’t explain why he sees signs of financial strains all around Germany.

My answer: are you aware there is more than 1 trillion EUR of debt in state and federal agencies with government guarantees not being included in the official public debt calculations? This comes on top of another 1.5 trillion EUR of guarantees for various items like pensions, financing and subsidy schemes. If you add everything up as it should be done, instead of being “buried” in complex accounting, the German real total debt is already 130% of its GDP.

My friend reaction: I didn’t know about that

ChatGPT said: Germany’s industrial decline is more than cyclical it’s structural. Energy policy, overregulation, and deindustrialization in the name of “green transition” are eroding the backbone of Europe’s economy.Once the envy of global manufacturing, Germany is now facing a slow-motion competitiveness crisis one that could reshape Europe’s economic hierarchy for decades.



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