BERLIN (Reuters) - The costs of an aging population will put pressure on future German budgets and action is needed now to rein in public spending, Germany's finance minister Christian Lindner said on Wednesday.
The German ministry of finance submitted a report on the sustainability of public finances, due once during the government's term in office.
"This sustainability report shows that there is a need for action," Lindner said, calling for a normalisation of public spending after years of higher expenses due to the pandemic and the energy crisis.
The report shows the consequences of the aging of the population on public finances.
Under unfavourable conditions, age-related expenditure could climb from 27.3% of GDP in 2022 to 36.1% in 2070. Under a more positive scenario, that figure could be 30.8%.
Significantly higher deficits are to be expected for the German state as a whole. The debt level could rise to around 140% of economic output by 2070, or even to 365% under more unfavourable assumptions, the report said.
Germany's debt level is currently falling back towards 60%.