Germany is threatened with a huge debt drama!

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The ministry of Finance Minister Christian Lindner (45, FDP) warns of a drastic long-term increase in national debt.

Explosive: Due to a combination of economic weakness and the progressive aging of the population, the national debt could multiply to 345 percent of gross domestic product by 2070, according to the current sustainability report, which the Lindner Ministry presented on Wednesday.

► Such an increase is to be expected “in an unfavorable scenario,” according to the paper from the FDP-led ministry.

► In a “favorable scenario”, national debt could grow from the current 64 percent to 140 percent of gross domestic product.

► Means: The budget deficit could rise to 2.67 percent of gross domestic product by 2070 under favorable conditions and to 6.93 percent under unfavorable conditions.

“Not financially viable in the long term”

Lindner viewed the paper as an “appeal to politicians to initiate structural reforms in all relevant policy areas”. The current structure of pension, health and nursing care insurance is “unfinanceable in the long term in its current form”. ROOM!

The FDP budget expert Christoph Meyer (48) called on the traffic light coalition partners to be willing to reform. Plain language: “The sustainability report shows that without strong economic growth, the lavish welfare state will no longer be able to be financed in the future,” said Meyer.

Can we no longer afford the traffic lights? “Without strong economic growth, the lavish welfare state will no longer be able to be financed in the future,” says the FDP

Photo: Kay Nietfeld/dpa

Aging is a huge challenge

The focus of the 2024 report is on the demographic challenges facing public finances in the future. “We are already seeing that a decline in the working-age population is accompanied by an increase in the retired population,” the paper says.

► Accordingly, demographic-related government spending would increase – under “unfavorable conditions” from 27.3 percent of gross domestic product in 2022 to 36.1 percent in 2070.

► Under “favorable conditions”, the increase could be limited to 30.8 percent of gross domestic product in 2070.

Can we still be rescued?

In particular, higher immigration and lower unemployment would have a “favorable impact on the long-term sustainability” of government finances, writes the Federal Ministry of Finance.

A stronger increase in the labor market participation of older people and a greater increase in the labor market participation of women would also have positive effects.