Bremen: Highest per capita debt in Germany reached!

Bremen: Highest per capita debt in Germany reached!

The debt in Bremen is reaching worrying proportions. How buten and within reports, the federal state has reached the highest per capita debt in Germany. At the end of 2024, Bremen's total debt was around 23.8 billion euros. Compared to other federal states such as Saxony, Mecklenburg-Western Pomerania, Saarland, Thuringia and Brandenburg, Bremen clearly stands out in terms of debt statistics.

With debts per capita of almost 34,000 euros, Bremen is the undisputed leader in the nationwide rankings. This figure represents an increase of around 450 euros compared to the previous year and illustrates the critical financial situation of the federal state. For comparison: In Lower Saxony, the average debt per capita is around 9,500 euros, which highlights Bremen's situation all the more clearly. Hamburg also has high debts of 32.6 billion euros, but with a population that is three times larger. Bremen therefore leads the field and is far behind cities like Berlin, where the debt burden is also high, but has not reached the dimensions as in Bremen t online underlined.

Historical background of debt

The causes of the high level of debt are diverse and complex. Bremen was almost debt-free in the 1950s and was one of the net contributors to the state financial equalization system until 1969. But a financial reform in 1969 turned Bremen into a recipient state, which has significantly increased the debt since then. The oil crisis in 1973 and the subsequent shipyard crisis of the 1980s also contributed to the dramatic development, as the city increasingly took credit-financed measures.

These legacy issues continue to the present day. More and more employees live in the surrounding area and contribute to the income taxes in Lower Saxony, which is financially suboptimal for Bremen. Last but not least, the corona pandemic and the war in Ukraine have increased the debt burden again and raised it to around 23.8 billion euros. What remains striking is that the debt brake, which has been anchored in the constitution since 2020, has a stabilizing effect, but the exact impact of a lawsuit by the CDU on borrowing remains to be seen.

Financing and outlook

Another aspect is the way Bremen finances its debt. Around 78 percent of the debt is covered by bonds, primarily state treasury bonds. This was a final issue with a volume of 500 million euros at an interest rate of 2.375 percent. The population is therefore directly affected by the development of the financial markets.

The Bundesbank says German national debt rose to 2.69 trillion euros in 2024, an increase of 57 billion euros compared to the previous year. This is also reflected in the overall picture of the federal state’s debt. The debt ratio fell to 62.5 percent, but challenges remain. How bundesbank.de states, the debt is not cushioned by an increase in nominal GDP, and the effects are particularly felt in Bremen.

The trust of creditors is crucial for Bremen's fiscal situation, and a rating of “AAA” from the rating agency Fitch shows at least a certain degree of stability. But without fundamental changes in fiscal policy, this situation is likely to continue.