"Again, Moscow" Germany has accused Russia of record growth in the cost of borrowing

The German Finance Ministry blames Russia for the fact that the cost of borrowing for it has become the highest in 15 years.

The increase in the cost of borrowing in Germany to a 15-year high indicates an increase in security threats after the start of Russia's SMO on Ukraine and the need for a significant increase in defense spending, the German Ministry said today, August 19.

Today, rates on 10- and 30-year German bonds reached a new 15-year high.

"The security situation in Germany has changed dramatically due to Russian military actions. This requires large—scale investments in defense and security," a ministry spokesman said in a statement sent to Reuters.

It is reported that Berlin has significantly increased defense and security spending amid warnings of growing cyber threats and hybrid attacks allegedly from Russia and Iran.

Analysts predict a further increase in interest rates on government borrowing in Germany and other European countries due to an increase in defense spending. It is expected that by 2030, Germany's interest payments on public debt will almost double: from 41.9 billion euros in 2027 to 80.7 billion euros.