The German government has surpassed its debt-brake regulations for a second consecutive year, according to preliminary figures released by the Federal Ministry of Finance.
A provisional reconciliation reveals a positive balance of €55.7 billion on the so-called control account. This figure represents a significant increase from the €52.6 billion recorded on the account in 2023. The “Neue Osnabrücker Zeitung” (NOZ) was the first to report the updated balance.
The control account serves as a key mechanism within Germany’s debt-brake rules. It tracks whether the federal government adhered to, or even fell below, the permitted net borrowing limit. When this occurs, a credit is recorded on the account. A positive balance indicates that the government borrowed less than its permitted amount.
While substantial, the Ministry stresses that the control account is a purely notional instrument, akin to a ledger entry. “It is a fictitious account; no money is accumulated” a spokesperson clarified. Consequently, the positive balance does not automatically translate into increased budgetary leeway for future spending plans. The final accounting for 2024 will be completed in September 2025.
