Majority of German Population Expresses Apprehension Regarding Their Financial Prospects in Future
In a recent survey conducted by Opinium Research on behalf of CRIF, concerns about financial stability are prevalent among Germans. The study, which was carried out between March 20 and 27, 2025, reveals that a staggering 80% of German consumers are worried about their financial situation in the next 12 months. This anxiety is not limited to Germany, as 24% of Europeans also expect a decline in their standard of living in the coming year.
The current financial challenges facing Germans stem from several interrelated economic and political factors. Germany's economy has struggled since 2023, with the war in Ukraine and a protectionist global trade environment hurting export-driven businesses. Additionally, a chronic lack of investment has hampered growth, constrained in part by Germany’s fiscal "debt brake" rule that limits government borrowing.
Political instability has also played a role, with the previous government collapsing in late 2024 due to disagreements over removing fiscal restraints. The February 2025 election brought a new coalition government (CDU/CSU and SPD) that approved a record budget for 2025 involving increased borrowing. This signals a major shift to boost growth and modernize the economy, including ramping up defense spending and infrastructure investment.
Inflation and cost of living pressure are ongoing concerns, with the economic downturn and geopolitical factors implying ongoing cost pressures on households. To address these issues, growing consumer credit offerings, such as "buy now, pay later," have raised concerns about over-indebtedness. New regulations are being introduced in 2025 to better protect consumers from excessive financial burdens and unfair credit terms on small loans and alternative financing options.
Germans are coping with these challenges in various ways. One strategy is to become more frugal, with 59% of respondents reporting that they have already done so in the past twelve months. Another is to monitor financial affairs more frequently digitally, with 44% now doing so. In fact, more than half of German consumers - 58% - want the option to manage their finances entirely digitally via smartphone or computer.
To curb spending, 28% of Germans are consciously using cash more often, while 27% report having experienced at least one credit rejection in their lifetime. Interestingly, only around 15% in Italy and 16% in France have had the experience of being denied credit.
The new government’s fiscal plans represent a major effort to stimulate the economy through large-scale investment in infrastructure, defense, and modernization efforts, supported by increased borrowing despite past fiscal restraint. This also reflects a political consensus to address Germany’s economic challenges head-on after recent stagnation and government instability.
Consumer protections are being strengthened to reduce the risk of household over-indebtedness amid a challenging financial environment, aiming to safeguard vulnerable consumers from falling into debt traps with new credit products. Migration to metropolitan areas by young people, noted in the OECD survey, reflects a coping strategy for better job opportunities and economic prospects, although this also poses challenges for smaller towns and regions.
In summary, Germans in 2025 face a difficult economic environment marked by slow growth, structural challenges, and geopolitical shocks. The response centers on ambitious government investment programs financed by increased borrowing, political realignment, and tighter consumer credit regulation to support both macroeconomic recovery and household financial stability.
Other business sectors, such as personal-finance industries, are experiencing increased demand due to Germans' concerns about their finances in the next 12 months. The government's efforts to boost growth through infrastructure investment and defense spending may lead to additional finance opportunities for businesses.
As a result of the financial challenges faced by Germans, there is a growing interest in digital solutions for managing personal finances, with more than half of consumers preferring to manage their finances digitally via smartphone or computer.
