# EDGAR Filing Document

**Accession Number:** 0001144797
**File Stem:** 0001104659-26-057755
**Filing Date:** 2026-5
**Character Count:** 609284
**Document Hash:** 7f8d218ff8da4939cc28c9815a0faebf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-057755.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001104659-26-057755

**CONFORMED SUBMISSION TYPE**: 18-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LANDWIRTSCHAFTLICHE RENTENBANK
- **CENTRAL INDEX KEY:** 0001144797
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 18-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-13710
- **FILM NUMBER:** 26957426

**BUSINESS ADDRESS:**
- **STREET 1:** THEODOR-HEUSS-ALLEE 80
- **CITY:** FRANKFURT
- **STATE:** 2M
- **ZIP:** 60486
- **BUSINESS PHONE:** 01149692107708

**MAIL ADDRESS:**
- **STREET 1:** THEODOR-HEUSS-ALLEE 80
- **CITY:** FRANKFURT
- **STATE:** 2M
- **ZIP:** 60486

**FORM 18-K**

**For Foreign Governments and Political Subdivisions Thereof**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**ANNUAL REPORT**

**of**

**LANDWIRTSCHAFTLICHE RENTENBANK**

**(Name of Registrant)**

Date of end of last fiscal year: December 31, 2025

**SECURITIES REGISTERED<br> (As of the close of the fiscal year)\***

---

| | | |
|:---|:---|:---|
| Title of Issue | Amount as to which<br> registration is effective | Names of exchanges on which<br> registered |
| N/A | N/A | N/A |

---

\* The registrant files annual reports on Form 18-K on a voluntary basis.

Name and address of person authorized to receive notices<br> and communications from the Securities and Exchange Commission:

**SINA R. HEKMAT, ESQ.<br> Hogan Lovells US LLP<br> 390 Madison Avenue<br> New York, NY 10017<br> +1 (212) 918 3000**

**EXPLANATORY NOTE**

This annual report is filed by Landwirtschaftliche Rentenbank ("Rentenbank"), an institution organized under public law of the Federal Republic of Germany (the "Federal Republic"). All obligations to the holders of any debt securities issued by Rentenbank are effectively backed by the full faith and credit of the Federal Republic.

In this annual report, references to "€", "euro" or "EUR" are to the single currency which was introduced as of January 1, 1999, at the start of the third stage of European economic and monetary union. In this annual report, references to "U.S. dollars" or "$" are to United States dollars.

**FORM 18-K**

1. In respect of each issue of securities of Rentenbank registered, a brief statement as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The general effect of any material modifications, not previously reported, of the rights of the holders of such securities.

There have been no such modifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The title and the material provisions of any law, decree or administrative action, not previously reported, by reason of which the
security is not being serviced in accordance with the terms thereof.

There has been no such law, decree or administrative action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The circumstances of any other failure, not previously reported, to pay principal, interest or any sinking fund or authorization installment.

There has been no such failure.

Rentenbank has no securities issuances registered under the Securities Exchange Act of 1934 and, accordingly, the responses above relate to outstanding securities issuances of Rentenbank issued under the Securities Act of 1933.

*Landwirtschaftliche Rentenbank*

2. A statement as of the close of the last fiscal year of Rentenbank giving the total outstanding of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Internal funded debt of Rentenbank. (Total to be stated in the currency of the registrant. If any internal funded debt is payable
in a foreign currency, it should not be included under paragraph (a), but under paragraph (b) of this item.)

The total principal amount of internal funded debt of Rentenbank outstanding as of December 31, 2025, was EUR 48,337,306,999.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) External funded debt of Rentenbank. (Totals to be stated in the respective currencies in which payable. No statement need be furnished
as to intergovernmental debt.)

See "Supplementary Information on Funded Debt of Rentenbank", on pp. 35-38 of Exhibit (d), which is hereby incorporated by reference herein.

3. A statement giving the title, date of issue, date of maturity, interest rate and amount outstanding, together with the currency or
currencies in which payable, of each issue of funded debt of Rentenbank outstanding as of the close of the last fiscal year of Rentenbank.

See "Supplementary Information on Funded Debt of Rentenbank", on pp. 35-38 of Exhibit (d), which is hereby incorporated by reference herein.

4. (a) As to each issue of securities of Rentenbank which is registered, there should be furnished a breakdown of the total amount
outstanding, as shown in Item 3, into the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Total amount held by or for the account of Rentenbank.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Total estimated amount held by nationals of the Federal Republic; this estimate need be furnished only if it is practicable to do
so.

Not practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Total amount otherwise outstanding.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a substantial amount is set forth in answer to paragraph (a)(1) above, describe briefly the method employed by Rentenbank
to reacquire such securities.

Not applicable.

5. A statement as of the close of the last fiscal year of Rentenbank giving the estimated total of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Internal floating indebtedness of Rentenbank. (Total to be stated in the currency of the registrant.)

The total principal amount of internal floating indebtedness of Rentenbank outstanding as of December 31, 2025, was EUR 769,290,123.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) External floating indebtedness of Rentenbank. (Total to be stated in the respective currencies in which payable.)

The total principal amount of external floating indebtedness of Rentenbank outstanding as of December 31, 2025, was (in millions):

---

| | |
|:---|:---|
| U.S. dollar | $30 |

---

6. Statements of the receipts, classified by source, and of the expenditures, classified by purpose of Rentenbank for each fiscal year
of Rentenbank ended since the close of the latest fiscal year for which such information was previously reported. These statements should
be so itemized as to be reasonably informative and should cover both ordinary and extraordinary receipts and expenditures; there should
be indicated separately, if practicable, the amount of receipts pledged or otherwise specifically allocated to any issue registered, indicating
the issue.

See "Financial Section — Management Report", "Financial Section — Financial Statements — Balance Sheet", "Financial Section — Financial Statements — Income Statement", "Financial Section — Financial Statements — Cash flow statement", "Financial Section — Financial Statements — Statement of changes in equity" and "Financial Section — Notes to the Financial Statements", pp. 1-48, 50-51, 52, 53-54, 55, 56-82 of Exhibit (e), which are hereby incorporated by reference herein.

7. (a) If any foreign exchange control, not previously reported, has been established by the Federal Republic, briefly describe such foreign
exchange control.

No foreign exchange control not previously reported was established by the government of the Federal Republic during 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any foreign exchange control previously reported has been discontinued or materially modified, briefly describe the effect of any
such action, not previously reported.

No foreign exchange control previously reported was discontinued or materially modified by the government of the Federal Republic during 2025.

8. Brief statements as of a date reasonably close to the date of the filing of this report, (indicating such date) in respect of the
note issue and gold reserves of the central bank of issue of Rentenbank, and of any further gold stocks held by Rentenbank.

Not applicable.

9. Statements of imports and exports of merchandise for each year ended since the close of the latest year for which such information
was previously reported. Such statements should be reasonably itemized so far as practicable as to commodities and as to countries. They
should be set forth in terms of value and of weight or quantity; if statistics have been established only in terms of value, such will
suffice.

Not applicable.

10. The balance of international payments of Rentenbank for each year ended since the close of the latest year for which such information
was previously reported. The statements of such balances should conform, if possible, to the nomenclature and form used in the "Statistical
Handbook of the League of Nations." (These statements need be furnished only if the registrant has published balances of international
payments.)

Not applicable.

*Federal Republic of Germany*

2. A statement as of December 31, 2025 giving the total outstanding of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Internal funded debt of the Federal Republic. (Total to be stated in the currency of the Federal Republic. If any internal funded
debt is payable in foreign currency, it should not be included under this paragraph (a), but under paragraph (b) of this item.)

The total amount of internal funded indebtedness of the Federal Republic, which is defined as euro denominated debt with an initial maturity of one year or more, outstanding as of December 31, 2025 was EUR 1,638.91 billion *(Source: Open-Data-Portal of the Federal Ministry of Finance https://www.bundesfinanzministerium.de/Datenportal/Daten/offene-daten/haushalt-oeffentliche-finanzen/Zeitreihe-Schuldenstand-Bruttokreditbedarf-Zinsen-Tilgung-ab1996/Zeitreihe-Schuldenstand-Tilgung-ab1996.html).*

For further information on the principal amount of the outstanding direct debt of the Federal Republic, see "Tables and Supplementary Information—I. Direct Debt of the Federal Government - Summary of the Principal Amount of the Outstanding Direct Debt of the Federal Government", p. G-44 of Exhibit (d), which is hereby incorporated by reference herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) External funded debt of the Federal Republic. (Totals to be stated in the respective currencies in which payable. No statement need
be furnished as to intergovernmental debt.)

None.

3. A statement giving the title, date of issue, date of maturity, interest rate and amount outstanding, together with the currency or
currencies in which payable, of each issue of funded debt of the Federal Republic outstanding as of the close of the last fiscal year
of the Federal Republic.

See "Tables and Supplementary Information—I. Direct Debt of the Federal Government", pp. G-44 to G-47 of Exhibit (d), which are hereby incorporated by reference herein.

4. (a) As to each issue of securities of the Federal Republic which is registered, there should be furnished a breakdown of the total
amount outstanding, as shown in Item 3, into the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Total amount held by or for the account of the Federal Republic.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Total estimated amount held by nationals of the Federal Republic; this estimate need be furnished only if it is practicable to do
so.

Not practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Total amount otherwise outstanding.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a substantial amount is set forth in answer to paragraph (a)(1) above, describe briefly the method employed by the Federal
Republic to reacquire such securities.

Not applicable.

5. A statement as of the close of the last fiscal year of the Federal Republic giving the estimated total of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Internal floating indebtedness of the Federal Republic. (Total to be stated in the currency of the Federal Republic.)

The total amount of internal floating indebtedness of the Federal Republic, which is defined as euro denominated debt with an initial maturity of less than one year, outstanding as of December 31, 2025 was EUR 90.56 billion *(Source: Open-Data-Portal of the Federal Ministry of Finance: https://www.bundesfinanzministerium.de/Datenportal/Daten/offene-daten/haushalt-oeffentliche-finanzen/Zeitreihe-Schuldenstand-Bruttokreditbedarf-Zinsen-Tilgung-ab1996/Zeitreihe-Schuldenstand-Tilgung-ab1996.html).*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) External floating indebtedness of the Federal Republic. (Total to be stated in the respective currencies in which payable.)

None.

6. Statements of the receipts, classified by source, and of the expenditures, classified by purpose, of the Federal Republic for each
fiscal year of the Federal Republic ended since the close of the latest fiscal year for which such information was previously reported.
These statements should be so itemized as to be reasonably informative and should cover both ordinary and extraordinary receipts and expenditures;
there should be indicated separately, if practicable, the amount of receipts pledged or otherwise specifically allocated to any issue
registered, indicating the issue.

See "The Federal Republic of Germany—Public Finance", pp. G-36 et seq. of Exhibit (d), which are hereby incorporated by reference herein.

7. (a) If any foreign exchange control, not previously reported, has been established by the Federal Republic, briefly describe the effect of
any such action, not previously reported.

No foreign exchange control not previously reported was established by the Federal Republic during 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any foreign exchange control previously reported has been discontinued or materially modified, briefly describe the effect of any
such action, not previously reported.

No foreign exchange control previously reported was discontinued or materially modified during 2025.

8. Brief statements as of a date reasonably close to the date of the filing of this report (indicating such date), in respect of the
note issue and gold reserves of the central bank of issue of the Federal Republic, and of any further gold stocks held by the Federal
Republic.

See "The Federal Republic of Germany—Monetary and Financial System—Official Foreign Exchange Reserves," p. G-29 of Exhibit (d), which is hereby incorporated by reference herein.

9. Statements of imports and exports of merchandise for each year ended since the close of the latest year for which such information
was previously reported. The statements should be reasonably itemized so far as practicable as to commodities and as to countries. They
should be set forth in terms of value and of weight or quantity; if statistics have been established in terms of value, such will suffice.

See "The Federal Republic of Germany—The Economy—International Economic Relations—Balance of Trade," p. G-23 et seq. of Exhibit (d), which are hereby incorporated by reference herein.

10. The balances of international payments of the Federal Republic for each year ended since the close of the latest year for which such
information was previously reported. The statements of such balances should conform, if possible, to the nomenclature and form used in
the "Statistical Handbook of the League of Nations." (These statements need to be furnished only if the Federal Republic has
published balances of international payments.)

See "The Federal Republic of Germany—The Economy—International Economic Relations—Balance of Payments," pp. G-22 to G-23 of Exhibit (d), which is hereby incorporated by reference herein.

This annual report comprises:

Pages numbered 1 to 9, consecutively,

The following exhibits:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit (a) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit (b) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit (c)](tm2612034d1_ex99-d.htm) | [The latest annual budget for the Federal Republic of Germany (pp. G-36 to G-40 of Exhibit (d) hereto)](tm2612034d1_ex99-d.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit (d)](tm2612034d1_ex99-d.htm) | [Description of Landwirtschaftliche Rentenbank and the Federal Republic of Germany, dated May 8, 2026](tm2612034d1_ex99-d.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit (e)](tm2612034d1_ex99-e.htm) | [Landwirtschaftliche Rentenbank Financial Information 2025](tm2612034d1_ex99-e.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit (f)](tm2612034d1_ex99-f.htm) | [Consent of Independent Auditor](tm2612034d1_ex99-f.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Exhibit (g)](tm2612034d1_ex99-g.htm) | [Consent of the Federal Republic of Germany](tm2612034d1_ex99-g.htm) |

---

This annual report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant Landwirtschaftliche Rentenbank has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| LANDWIRTSCHAFTLICHE RENTENBANK | LANDWIRTSCHAFTLICHE RENTENBANK |
| By | /s/ Nikola Steinbock |
| Name: | Nikola Steinbock |
| Title: | Chairwoman of the Management Board |
| By | /s/ Stefan Goebel |
| Name: | Stefan Goebel |
| Title: | Managing Director |

---

Date: May 8, 2026

exhibit INDEX

---

| | |
|:---|:---|
| <u>Exhibit</u> | <u>Description</u> |
| [(c)](tm2612034d1_ex99-d.htm) | [Latest annual budget for the Federal Republic of Germany (pp. G-36 to G-40 of Exhibit (d) hereto)](tm2612034d1_ex99-d.htm) |
| [(d)](tm2612034d1_ex99-d.htm) | [Description of Landwirtschaftliche Rentenbank and the Federal Republic of Germany, dated May 8, 2026](tm2612034d1_ex99-d.htm) |
| [(e)](tm2612034d1_ex99-e.htm) | [Landwirtschaftliche Rentenbank Financial Information 2025](tm2612034d1_ex99-e.htm) |
| [(f)](tm2612034d1_ex99-f.htm) | [Consent of Independent Auditor](tm2612034d1_ex99-f.htm) |
| [(g)](tm2612034d1_ex99-g.htm) | [Consent of the Federal Republic of Germany](tm2612034d1_ex99-g.htm) |

---

## Ex-99.D

**EXHIBIT (d)**

This description of Landwirtschaftliche Rentenbank and the Federal Republic of Germany is dated May 8, 2026, and appears as Exhibit (d) to the Annual Report on Form 18-K of Landwirtschaftliche Rentenbank for the fiscal year ended December 31, 2025.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [PRESENTATION OF FINANCIAL AND OTHER INFORMATION](#a_001) | [1](#a_001) |
| [FORWARD-LOOKING STATEMENTS](#a_002) | [1](#a_002) |
| [RECENT DEVELOPMENTS](#a_003) | [2](#a_003) |
| [LANDWIRTSCHAFTLICHE RENTENBANK](#a_004) | [2](#a_004) |
| [THE FEDERAL REPUBLIC OF GERMANY](#a_005) | [3](#a_005) |
| [Overview of Key Economic Figures](#a_006) | [3](#a_006) |
| [LANDWIRTSCHAFTLICHE RENTENBANK](#a_007) | [8](#a_007) |
| [GENERAL](#a_008) | [8](#a_008) |
| [Overview](#a_006) | [8](#a_006) |
| [Relationship with the Federal Government](#a_010) | [9](#a_010) |
| [Sustainability](#a_011) | [11](#a_011) |
| [BUSINESS](#a_012) | [13](#a_012) |
| [Loans to Banks and Customers](#a_013) | [14](#a_013) |
| [Loan Portfolio](#a_014) | [14](#a_014) |
| [Eligibility of Financial Institutions](#a_015) | [16](#a_015) |
| [Securities Portfolio](#a_016) | [17](#a_016) |
| [Subsidiaries](#a_017) | [17](#a_017) |
| [Activities on Behalf of the Federal Republic and German Federal States (Bundesländer) Governments](#a_018) | [17](#a_018) |
| [Sources of Funds](#a_019) | [18](#a_019) |
| [Liabilities to Customers](#a_020) | [19](#a_020) |
| [Risk Management and Derivatives](#a_021) | [20](#a_021) |
| [Credit Analysis](#a_022) | [20](#a_022) |
| [Currency Risk](#a_023) | [20](#a_023) |
| [Liquidity Management](#a_024) | [20](#a_024) |
| [Impact of Climate Change on Rentenbank's Business Activities](#a_025) | [20](#a_025) |
| [CAPITALIZATION](#a_026) | [22](#a_026) |
| [MANAGEMENT](#a_027) | [23](#a_027) |
| [Management Board](#a_028) | [23](#a_028) |
| [Supervisory Board](#a_029) | [23](#a_029) |
| [General Meeting](#a_030) | [25](#a_030) |
| [Corporate Governance](#a_031) | [25](#a_031) |
| [EMPLOYEES](#a_032) | [26](#a_032) |
| [SUPERVISION AND REGULATION](#a_033) | [27](#a_033) |
| [General](#a_034) | [27](#a_034) |
| [KWG and CRR](#a_035) | [27](#a_035) |
| [Capital Adequacy Requirements](#a_036) | [28](#a_036) |
| [Liquidity Requirements](#a_037) | [28](#a_037) |
| [Limitation on Large Exposures](#a_038) | [29](#a_038) |
| [Audits](#a_039) | [29](#a_039) |
| [Reporting Requirements and Investigations](#a_040) | [29](#a_040) |
| [BaFin Supervisory and Enforcement Power](#a_041) | [29](#a_041) |
| [Regulatory changes in the banking sector on EU level](#a_042) | [30](#a_042) |
| [FINANCIAL SECTION](#a_043) | [31](#a_043) |
| [FINANCIAL STATEMENTS AND AUDITORS](#a_044) | [31](#a_044) |
| [SUMMARY OF MATERIAL DIFFERENCES BETWEEN GERMAN GAAP AND U.S. GAAP](#a_045) | [32](#a_045) |
| [SUPPLEMENTARY INFORMATION ON FUNDED DEBT](#S-1) | [35](#S-1) |

---

i

---

| | |
|:---|:---|
| [THE FEDERAL REPUBLIC OF GERMANY](#a_046) | [G-1](#a_046) |
| [GENERAL](#a_047) | [G-1](#a_047) |
| [Area, Location and Population](#a_048) | [G-1](#a_048) |
| [Government](#a_049) | [G-2](#a_049) |
| [Political Parties](#a_050) | [G-3](#a_050) |
| [International Organizations](#a_051) | [G-3](#a_051) |
| [The European Union and European Integration](#a_052) | [G-3](#a_052) |
| [Statistical Standards](#a_053) | [G-13](#a_053) |
| [THE ECONOMY](#a_054) | [G-14](#a_054) |
| [Overview](#a_055) | [G-14](#a_055) |
| [Key Economic Figures](#a_056) | [G-14](#a_056) |
| [Economic Outlook](#a_057) | [G-15](#a_057) |
| [General Economic Policy](#a_058) | [G-15](#a_058) |
| [Gross Domestic Product](#a_059) | [G-17](#a_059) |
| [Sectors of the Economy](#a_060) | [G-18](#a_060) |
| [Employment and Labor](#a_061) | [G-19](#a_061) |
| [Social Security, Social Protection, and Social Policy](#a_062) | [G-21](#a_062) |
| [International Economic Relations](#a_063) | [G-22](#a_063) |
| [MONETARY AND FINANCIAL SYSTEM](#a_064) | [G-28](#a_064) |
| [The ESCB and the Eurosystem](#a_065) | [G-28](#a_065) |
| [Monetary Policy](#a_066) | [G-28](#a_066) |
| [Official Foreign Exchange Reserves](#a_067) | [G-29](#a_067) |
| [External Positions of Banks](#a_068) | [G-29](#a_068) |
| [Foreign Exchange Rates and Controls](#a_069) | [G-30](#a_069) |
| [Financial System](#a_070) | [G-31](#a_070) |
| [Securities Market](#a_071) | [G-35](#a_071) |
| [PUBLIC FINANCE](#a_072) | [G-36](#a_072) |
| [Receipts and Expenditures](#a_073) | [G-36](#a_073) |
| [Germany's General Government Deficit/Surplus and General Government Gross Debt](#a_074) | [G-37](#a_074) |
| [Fiscal Outlook](#a_075) | [G-39](#a_075) |
| [Tax Structure](#a_076) | [G-40](#a_076) |
| [Government Participations](#a_077) | [G-42](#a_077) |
| [Direct Debt of the Federal Government](#a_078) | [G-43](#a_078) |
| [TABLES AND SUPPLEMENTARY INFORMATION](#a_079) | [G-44](#a_079) |
| [I. DIRECT DEBT OF THE FEDERAL GOVERNMENT](#a_080) | [G-44](#a_080) |
| [II. GUARANTEES BY THE FEDERAL GOVERNMENT (1)](#a_081) | [G-48](#a_081) |

---

ii

***THIS DOCUMENT (OTHERWISE AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF LANDWIRTSCHAFTLICHE RENTENBANK. THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.***

**PRESENTATION OF FINANCIAL AND OTHER INFORMATION**

Unless explicitly stated otherwise, financial information relating to Landwirtschaftliche Rentenbank presented herein has been prepared in accordance with German GAAP ("German Commercial Code" or "HGB"). Amounts in tables may not add up due to rounding differences.

In this description, references to "€", "euro" or "EUR" are to the single currency which was introduced as of January 1, 1999, at the start of the third stage of European economic and monetary union. In this description, references to "U.S. dollars" or "$" are to United States dollars, references to "JPY" are to Japanese Yen, and references to "A$" or "AUD" are to Australian dollars.

On May 7, 2026, the euro foreign exchange reference rate as published by the European Central Bank was EUR 1.00 = U.S. dollar 1.177 (EUR 0.8496 per U.S. dollar).

In this description, references to the "Federal Republic" and "Germany" are to the Federal Republic of Germany and references to the "Federal Government" are to the government of the Federal Republic of Germany. The terms "Rentenbank", the "Bank", "we" or "us" refer to Landwirtschaftliche Rentenbank.

**FORWARD-LOOKING STATEMENTS**

This description contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about the industry in which we operate, management's beliefs and assumptions made by management. Such statements include, in particular, statements about our plans, strategies and prospects. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", variations of such words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements after they are made, whether as a result of new information, future events or otherwise.

**RECENT DEVELOPMENTS**

**LANDWIRTSCHAFTLICHE RENTENBANK**

The financial figures in this section are based on preliminary, unaudited results for Rentenbank's three months ended March 31, 2026. Rentenbank expects its final, audited financial statements for 2026 to be announced at a press conference and published in April 2027.

Rentenbank granted new promotional loans totaling EUR 2.4 billion in the first quarter. During this period, Rentenbank raised EUR 5.1 billion in medium and long-term funds in the capital market.

**THE FEDERAL REPUBLIC OF GERMANY**

**Overview of Key Economic Figures**

The following economic information regarding the Federal Republic of Germany is derived from the public official documents cited below.

***Gross Domestic Product (GDP)***

Gross Domestic Product

(adjusted for price, seasonal and calendar effects)<sup>(1)</sup>

---

| | | |
|:---|:---|:---|
| Reference period | Percentage change on the<br> previous quarter | Percentage change on the same <br> quarter in previous year |
| 1<sup>st</sup> quarter 2025 | 0.4 | -0.3 |
| 2<sup>nd</sup> quarter 2025 | -0.2 | 0.4 |
| 3<sup>rd</sup> quarter 2025 | -0.1 | -0.3 |
| 4<sup>th</sup> quarter 2025 | 0.2 | 0.4 |
| 1<sup>st</sup> quarter 2026 | 0.3 | 0.3 |

---

(1) Adjustment for seasonal and calendar effects according to the Census X13 method.

Germany's gross domestic product ("GDP") grew by 0.3% in the first quarter of 2026 compared with the fourth quarter of 2025 after adjusting for price, seasonal and calendar effects, following the increase at the end of 2025 (0.2% in the fourth quarter of 2025 compared with the third quarter of 2025). This was mainly due to an increase in both household and government final consumption expenditure as well as – according to provisional results available as of April 30, 2026 – growth in exports.

Compared to the first quarter of 2025, price-adjusted GDP in the first quarter of 2026 increased by 0.5%. The price and calendar adjusted GDP was 0.3% higher than in the same quarter of the previous year.

In addition to calculating data for the first quarter of 2026, the Federal Statistical Office, in line with its usual practice, also reviewed the results published earlier for 2025 and included new statistical information in the calculation of the results. This resulted in a downward revision of the rate of change of price-adjusted GDP by 0.1 percentage points for the fourth quarter of 2025. The results remained unchanged in the remaining quarters of the previous year. For the whole year of 2025, the most recent calculations resulted in a 0.3% increase in price and calendar adjusted GDP instead of the previous 0.4%.

*Source: Federal Statistical Office, Gross domestic product in the 1<sup>st</sup> quarter of 2026 up 0.3% on the previous quarter, press release of April 30, 2026 (https://www.destatis.de/EN/Press/2026/04/PE26_153_811.html?nn=2112).*

***Inflation Rate***

Inflation Rate

(based on overall consumer price index)

---

| | | |
|:---|:---|:---|
| Reference period | Percentage change on the<br> previous month | Percentage change on the same<br> month in previous year |
| April 2025 | 0.4 | 2.1 |
| May 2025 | 0.1 | 2.1 |
| June 2025 | 0.0 | 2.0 |
| July 2025 | 0.3 | 2.0 |
| August 2025 | 0.1 | 2.2 |
| September 2025 | 0.2 | 2.4 |
| October 2025 | 0.3 | 2.3 |
| November 2025 | -0.2 | 2.3 |
| December 2025 | 0.0 | 1.8 |
| January 2026 | 0.1 | 2.1 |
| February 2026 | 0.2 | 1.9 |
| March 2026 | 1.1 | 2.7 |
| April 2026 | 0.6 | 2.9 |

---

(1) Provisional figures.

The inflation rate in Germany is expected to be +2.9% in April 2026. It is measured as the change in the consumer price index (CPI) compared with the same month a year earlier. Based on preliminary results as of April 29, 2026, the Federal Statistical Office (Destatis) also reports that consumer prices increased by 0.6% on March 2026. The inflation rate excluding food and energy, often referred to as core inflation, is expected to stand at +2.3% in April 2026. Energy prices are expected to be up 10.1% on the same month of the previous year. This is the largest increase in energy prices since February 2023 (+19.1% on February 2022).

The inflation rate in Germany amounted to 2.7% in March 2026, after 1.9% in February 2026, 2.1% in January 2026 and 1.8% in December 2025. In March 2026, the most important driver of inflation was the increase in energy and service prices, which was offset in part by a lower than average increase in food prices. The inflation rate excluding food and energy, often referred to as core inflation, was 2.5% in March 2026, unchanged since January and February of that year.

The total prices of energy products were 7.2% higher in March 2026 than in March 2025. This was the first year-on-year increase in energy prices since December 2023. In February 2026, prices had been down 1.9% year on year. Motor fuel prices in March 2026 were up 20.0% on March 2025. The price of heating oil also registered a sharp increase, rising by 44.4%. These marked price increases were largely due to the conflict in the Middle East and the ensuing price developments on the crude oil market. Despite the increase in the price of heating oil, household energy on the whole was 1.2% less expensive in March 2026 than a year earlier (February 2026: -3.5%). Year on year, lower prices were recorded for electricity (-4.5%), natural gas including operating costs (-2.9%) and district heating (-1.2%), for example. This was due, in part, to measures implemented by the Federal Government since the start of the year (including reduced transmission network charges and the abolition of the gas storage neutrality charge).

Food price increases decelerated in March 2026 and were significantly lower than the overall rate of inflation, rising by 0.9% year-on-year after a 1.1% increase in February. The increase in prices from March 2025 to March 2026 was driven in particular by price increases for eggs (+14.8%), sugar, jam, honey and other confectionery (+6.1%, including chocolate: +9.6%), fruit (+4.7%), fresh vegetables (+3.8%) and meat and meat products (+3.6%). By contrast, price decreases were observed particularly for edible fats and oils (-17.6%, including butter: -29.1%; olive oil: -11.8%). In addition, lower prices were recorded for dairy products (-5.4%).

Overall goods prices were up by 2.3% year-on-year. Non-durable consumer goods increased by 3.4%, while durable goods increased by 0.5%. Aside from the rise in food prices by 0.9% and energy products by 7.2%, other products were also more expensive, in particular non-alcoholic beverages (+4.3%, including coffee, tea and cocoa: +12.1%) and tobacco products (+6.1%). By contrast, lower prices were recorded, for example, for major household appliances (-2.8%) and consumer electronics (-5.6%).

Service prices continued their upward trend, increasing by 3.2% year-on-year. Compared with goods, the price increases for services have been higher than overall inflation since January 2024. Year on year, particularly sharp price increases were registered for social protection services (+7.0%) and combined passenger transport services (+6.2%), in the latter case due, in particular, to the increase in price of the Germany Ticket at the start of the year. Compared with the previous year, substantial price increases were also observed in March 2026 for the maintenance and repair of vehicles (+4.8%), water supply and miscellaneous services relating to dwellings (+3.5%), catering services in restaurants, cafés and the like (+3.3%) and insurance services (+3.2%) Net rents exclusive of heating expenses (+1.9% on the same month of the previous year) continued to be a significant factor contributing to the overall development of prices in March 2026. Only a few services cost less than in the same month a year earlier, including telecommunications services (-0.1%).

Compared to February 2026, the consumer price index increased by 1.1% in March 2026. As a result of the conflict in the Middle East, energy prices rose significantly (+7.7%) compared with the previous month. In particular, energy prices increased by 7.7% compared to February 2026 as a result of the conflict in the Middle East. This increase was driven in particular by increases in the prices of motor fuels (+15.6%, including diesel fuel: +22.6%) and heating oil (+43.2%). In addition, higher prices were registered for international flights (+10.0%), package holidays and clothing (+4.4% in each case), partly due to seasonal factors. Food prices showed very little change (+0.1%). Fresh fruit, for example, was more expensive (+1.3%), but fresh vegetables, in particular, were less expensive (-2.8%, including cucumbers: -19.1%, butterhead or iceberg lettuce: -5.1%).

*Sources: Federal Statistical Office, Short-term indicators: Price indices at a glance (consumer prices, retail prices, producer prices, selling prices in wholesale trade, import prices, export prices). Tables with values and rates of change (https://www.destatis.de/EN/Themes/Economy/Short-Term-Indicators/Prices/pre110.html); Federal Statistical Office, Inflation rate of +2.9% expected in April 2026, press release of April 29, 2026 (https://www.destatis.de/EN/Press/2026/04/PE26_149_611.html?nn=2112).*

***Unemployment Rate***

Unemployment Rate

(percent of unemployed persons in the total labor force according to the<br> International Labour Organization (ILO) definition) (1)

---

| | | |
|:---|:---|:---|
| Reference period | Original percentages | Adjusted percentages (2) |
| March 2025 | 3.7 | 3.6 |
| April 2025 | 3.8 | 3.7 |
| May 2025 | 3.8 | 3.7 |
| June 2025 | 3.6 | 3.7 |
| July 2025 | 3.9 | 3.8 |
| August 2025 | 3.9 | 3.8 |
| September 2025 | 4.0 | 3.9 |
| October 2025 | 3.6 | 3.9 |
| November 2025 | 3.8 | 3.9 |
| December 2025 | 3.7 | 4.0 |
| January 2026 | 4.2 | 4.0 |
| February 2026 | 4.2 | 4.0 |
| March 2026 | 4.2 | 4.0 |

---

(1) The time series on unemployment are based on the German Labour
Force Survey.

(2) Trend cycle component (X-13-ARIMA method using JDemetra+; calculation by Eurostat).

Approximately 42.3 million persons resident in Germany were in employment in March 2026. According to provisional calculations of the Federal Statistical Office, the seasonally adjusted number of persons in employment decreased by 25,000, or 0.1%, compared to the previous month. In the period from May 2025 to February 2026, employment decreased by an average of 16,000 people month on month.

Compared to March 2025, the number of employed persons in March 2026 decreased by 174,000 (-0.4%). The downward trend in the year-on-year labor market figures, which has been observed since August 2025, therefore continued. In both January and February 2026, the year-on-year rate of change stood at -0.3%.

In March 2026, the number of unemployed persons increased by approximately 210,000, or 12.9%, compared to March 2025. Adjusted for seasonal and irregular effects, the number of unemployed persons in March 2026 stood at 1.8 million, reflecting a decrease of 6,000 people or 0.4% compared to February 2026. Between February 2026 and March 2026, the adjusted unemployment rate was unchanged at 4.0%.

*Sources: Federal Statistical Office, Employment in March 2026 down on the previous month after seasonal adjustment, press release of April 30, 2026 (https://www.destatis.de/EN/Press/2026/04/PE26_152_132.html?nn=2112); Federal Statistical Office, Genesis-Online Datenbank, Result 13231-0001, Unemployed persons, persons in employment, economically active population, unemployment rate: Germany, months, original and adjusted data, accessed on April 30, 2026 (https://www-genesis.destatis.de/genesis/online?sequenz=tabelleErgebnis&selectionname=13231-0001&zeitscheiben=2&leerzeilen=false&language=en#abreadcrumb).*

***Current Account and Foreign Trade***

Current Account and Foreign Trade

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| | | |
|:---|:---|:---|
|  | (balance in EUR billions) (1) | (balance in EUR billions) (1) |
| Item | January-February<br> 2026 | January-February<br> 2025 |
| Goods | 20.7 | 33.0 |
| Services | -4.8 | -10.2 |
| Primary income | 11.5 | 22.9 |
| Secondary income | -5.6 | -10.8 |
| **Current account** | **22.0** | **34.9** |

---

(1) Figures may not add up due to rounding.

*Source: Deutsche Bundesbank, Major items of the German balance of payments, April 10, 2026 (https://www.bundesbank.de/resource/blob/810962/2ac374ac7140be331361f568a767c87c/472B63F073F071307366337C94F8C870/aw1e1-1a-data.pdf).*

**Other Recent Developments**

***Monetary Policy***

On April 30, 2026, the Governing Council of the European Central Bank ("ECB") again decided to keep each of the three key ECB interest rates – the deposit facility rate, the main refinancing operations rate and the marginal lending facility rate – unchanged. The Governing Council has maintained the ECB's key interest rates unchanged since its monetary policy decision of June 5, 2025, which reduced each of these rates by 25 basis points. As of the date of this amendment, the deposit facility, main refinancing operations and marginal lending facility rates are 2.00%, 2.15% and 2.40%, respectively.

In announcing its decision, the Governing Council noted that the euro area had entered the current period of surging energy prices with inflation at around the ECB's two per cent target, and that the economy has shown resilience over recent quarters. The Governing Council stated its view that longer-term inflation expectations remain well anchored, although inflation expectations over shorter horizons have moved up significantly.

The Governing Council reported that the asset purchase programme (APP) and pandemic emergency purchase programme (PEPP) portfolios are declining at a measured and predictable pace, as the Eurosystem no longer reinvests the principal payments from maturing securities.

*Sources: European Central Bank, Monetary policy decisions, press release of April 30, 2026 (https:// https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.mp260430~81b7179e6f.en.html).*

***War in Middle East***

On February 28, 2026 the United States and Israel commenced military actions against Iran. Israel also commenced military actions against Hezbollah in Lebanon. On April 8, 2026, Iran, the United States and Israel began a temporary ceasefire; on April 16, 2026, the United States announced that Israel and Lebanon had also agreed to a temporary ceasefire.

Despite the ceasefire, the United States continues a naval blockade of Iranian ports, and Iran continues to restrict the passage of commercial shipping through the Strait of Hormuz. Diplomatic efforts, including indirect and direct negotiations between Iran and the United States in Islamabad, Pakistan, have not yet produced a permanent resolution of hostilities.

The military and naval actions in Iran, the Persian Gulf and the surrounding Gulf states have driven higher energy prices in Germany and other parts of the world. In addition, international supply chains have experienced significant disruption. The direct and indirect effects of these developments have the potential to increase inflation significantly and to adversely affect GDP growth in Germany and other major economies.

As of the date of this annual report, it is not possible to predict the ultimate resolution of the hostilities in the Middle East or their precise effect on the global and German economies.

*Sources: "U.S., Iran and Israel Agree to Cease-Fire", The New York Times, April 7, 2026 (https://www.nytimes.com/live/2026/04/07/world/iran-war-trump-news?smid=url-share#f1657559-8135-50c9-ad7f-63636e6a5106); "Trump says Israel and Lebanon agree to temporary ceasefire", Al Jazeera, April 16, 2026 (https://www.aljazeera.com/news/2026/4/16/trump-says-israel-and-lebanon-agree-to-temporary-ceasefire); "US begins blockade of Iran's ports, Tehran threatens retaliation", Reuters, April 13, 2026 (updated April 14, 2026) (https://www.reuters.com/world/middle-east/us-blockade-iran-after-talks-fail-yield-a-deal-2026-04-13/).*

**LANDWIRTSCHAFTLICHE RENTENBANK**

**GENERAL**

**Overview**

Rentenbank was founded in 1949 as the development bank for the agriculture, forestry, fishing and food industries in Germany. We are an institution established under public law (*rechtsfähige Anstalt des öffentlichen Rechts*) and have our headquarters in Frankfurt am Main. We do not have any branches. Rentenbank is registered with the Commercial Register of the Local Court of Frankfurt am Main under HRA 30636.

Our activities and governance structure are regulated by our governing law and our statutes. Under our governing law, we are charged with the public task of promoting the agriculture industry (including forestry, horticulture and fisheries) and the development of rural areas through the extension of credit for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 agriculture industry, including forestry, horticulture and fisheries and the upstream and
 downstream areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 sale and warehousing of agricultural and food products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· agriculture-related
 environmental protection, the promotion of renewable energies and renewable raw materials
 from agriculture, the expansion of ecological farming and the protection of animals within
 the agricultural industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 improvement of infrastructure in predominantly rural areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· agriculture-related
 consumer protection.

Rentenbank's governing law (*Gesetz über die Landwirtschaftliche Rentenbank*; the "Rentenbank Law") was amended by the German Federal Development Banks New Structuring Law (*Förderbankenneustrukturierungsgesetz* or the "Restructuring Law") effective as of August 22, 2003, principally in order to clarify its permissible activities in connection with the understanding reached on March 1, 2002, between the Federal Government and the Commission of the European Union on the treatment of state guarantees for federal development banks. See "— Relationship with the Federal Government — Understanding with the European Commission".

In 2009, the Rentenbank Law was amended twice. Effective as of March 26, 2009 Article 4 of the Act on the further development of the German covered bond law dated March 20, 2009 *(Gesetz zur Fortentwicklung des Pfandbriefrechts vom 20. März 2009)* deleted in particular all provisions relating to a potential insolvency of Rentenbank since insolvency proceedings are inconsistent with the principles of *Anstaltslast*. See "— Relationship with the Federal Government — Institutional Liability (Anstaltslast)".

Furthermore, the Rentenbank Law was amended by Article 8 of the Act on the Implementation of Supervisory Provisions of the Payment Services Directive (*Gesetz zur Umsetzung der aufsichtsrechtlichen Vorschriften der Zahlungsdiensterichtlinie*) dated June 25, 2009. Effective as of October 31, 2009, the language of the Rentenbank Law was adapted to the language of the directive but did not have any impact on our legal status or permissible activities.

Moreover, the Rentenbank Law was amended by Article 4 of the statute implementing the Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms and adapting supervisory laws to Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms (*Gesetz zur Umsetzung der Richtlinie 2013/36/EU über den Zugang zur Tätigkeit von Kreditinstituten und die Beaufsichtigung von Kreditinstituten und Wertpapierfirmen und zur Anpassung des Aufsichtsrechts an die Verordnung (EU) Nr. 575/2013 über die Aufsichtsanforderungen an Kreditinstitute und Wertpapierfirmen*; the "*CRD IV Umsetzungsgesetz*") dated August 28, 2013. In connection with the *CRD IV Umsetzungsgesetz*, the Rentenbank Law was amended to include a new Section 1a, pursuant to which, as of January 1, 2014, the Federal Republic of Germany guarantees all existing and future obligations of Rentenbank in respect of money borrowed, bonds and notes issued and derivative transactions entered into by Rentenbank, as well as obligations of third parties that are expressly guaranteed by Rentenbank (the "Guarantee of the Federal Republic"). See also "— Relationship with the Federal Government — Guarantee of the Federal Republic".

Effective as of November 6, 2015, Section 16 of the Rentenbank Law was amended by Article 3 of the Act dated November 2, 2015 in order to clarify that Rentenbank shall not be subject to insolvency proceedings.

Finally, the Rentenbank Law was subject to further, largely technical amendments. In 2018, a minor change was made to align statutory references with revised payment services legislation (*Gesetz zur Umsetzung der Zweiten Zahlungsdiensterichtlinie*). In 2023, additional amendments were introduced by the Credit Secondary Market Promotion Act (*Kreditzweitmarktförderungsgesetz*), primarily updating cross-references and supervisory provisions, including references to the German covered bond law.

Rentenbank's statutes (*Satzung;* "Rentenbank's Statutes") were amended and restated, effective as of March 27, 2014, principally to reflect changes in the German Banking Act (*Gesetz über das Kreditwesen;* "*KWG*") based on the *CRD IV Umsetzungsgesetz*.

Due to the establishment of the nomination committee and remuneration committee, Rentenbank's Statutes were amended and restated, effective as of December 15, 2018.

We extend credit to German and other public and private sector banks in the European Union ("EU") both by means of traditional loans and by purchasing the debt securities of such banks. We also issue loans to financial institutions for the financing of rural development and infrastructure projects as well as German Federal States (*Bundesländer;* "German Federal States"), German rural districts, German municipalities and public law special purpose corporations. Finally, we extend credit to specific agencies of the Federal Republic and to banks in the United Kingdom, Norway, Switzerland, Australia and Canada and supranational organizations.

As an instrumentality serving public policy objectives of the Federal Government, we are not subject to corporate income and trade tax and do not seek to maximize profits.

Rentenbank's founding capital was raised through a public charge imposed on agricultural land in Germany from 1949 to 1958. This charge was established by a federal law, the Law on the Rentenbank Land Charge (*Gesetz über die Rentenbankgrundschuld*), dated May 11, 1949. The law itself remained formally in force until it was officially repealed in 2010.

At December 31, 2025, Rentenbank had total assets of €90.5 billion.

Starting with the fiscal year ending December 31, 2017, Rentenbank has decided no longer to prepare audited, consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the EU, as it is not legally required to do so. Rentenbank will continue to prepare audited annual, unconsolidated financial statements in accordance with German GAAP (German Commercial Code or HGB) included in Exhibit (e) to this annual report.

Our registered office is located at Frankfurt am Main, Germany, and our telephone number is +49-69-2107-0. The headquarters and business address of Rentenbank is Theodor-Heuss-Allee 80, 60486 Frankfurt am Main as Rentenbank´s office building at Hochstrasse 2, 60313 Frankfurt am Main is being renovated.

**Relationship with the Federal Government**

Rentenbank has no shareholders and Germany's federal legislature exercises ultimate control over Rentenbank through legislative action. For example, the Rentenbank Law specifies the scope of our activities. The Federal Government exercises supervision of Rentenbank through the Federal Ministry of Agriculture, Food and Regional Identity which makes its decisions in concert with the Federal Ministry of Finance. We may only be liquidated pursuant to legislative action by the federal legislature.

***Guarantee of the Federal Republic***

The Rentenbank Law was amended with effect from January 1, 2014 to provide expressly that the Federal Republic guarantees all existing and future obligations of Rentenbank in respect of money borrowed, bonds and notes issued and derivative transactions entered into by Rentenbank, as well as obligations of third parties that are expressly guaranteed by Rentenbank (Rentenbank Law, Section 1a). Under the Guarantee of the Federal Republic, if Rentenbank fails to make any payment of principal or interest or any other amount required to be paid with respect to securities issued by Rentenbank, or if Rentenbank fails to make any payment required to be made under Rentenbank's guarantee when that payment is due and payable, the Federal Republic will be liable at all times for that payment as and when it becomes due and payable. The Federal Republic's obligation under the Guarantee of the Federal Republic will rank equally, without any preference, with all of its other present and future unsecured and unsubordinated indebtedness. Holders of securities issued by Rentenbank or issued under Rentenbank's guarantee will be able to enforce this obligation directly against the Federal Republic without first having to take legal action against Rentenbank. The Guarantee of the Federal Republic is strictly a matter of statutory law and is not evidenced by any contract or instrument. It may be subject to defenses available to Rentenbank with respect to the obligations covered.

The Guarantee of the Federal Republic does not affect the obligations of the Federal Republic towards Rentenbank pursuant to the existing institutional liability (*Anstaltslast*).

***Institutional Liability (Anstaltslast)***

Rentenbank benefits from the *Anstaltslast*, or institutional liability, of the Federal Republic. This means that the Federal Republic will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· safeguard
 the economic basis of Rentenbank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· keep
 it in a position to pursue its operations throughout its existence as a statutory body under
 public law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· in
 the event of financial difficulties, enable it by financial contribution or in some other
 appropriate manner to perform its obligations when due.

This duty under public law exists solely between the Federal Republic and Rentenbank and not between the Federal Republic and any third party. The Federal Republic would not, under *Anstaltslast*, be permitted to allow us to default on an obligation; the Federal Republic would be required on its own authority to take steps to enable us to perform our obligation when due. Under German law, we would be required to enforce our rights against the Federal Republic in the event we needed to do so in order to meet our obligations to third parties, including holders of any of our securities. Accordingly, while *Anstaltslast* does not constitute a formal guarantee of our obligations by the Federal Republic, and our creditors do not have a direct claim against the Federal Republic under *Anstaltslast*, the effect of *Anstaltslast* is that our obligations, including our publicly issued debt securities, or our guarantee of debt securities should a substitute obligor be substituted for Rentenbank, are fully backed by the full faith and credit of the Federal Republic. The obligation of the Federal Republic under *Anstaltslast* would constitute a legally established charge on public funds that would be payable without the need for appropriation or any action by the federal parliament.

***Understanding with the European Commission***

On March 1, 2002, representatives of the Federal Government and the Commission of the European Union reached an understanding on the treatment of state guarantees for federal development banks such as Rentenbank for purposes of the EU state aid rules. Pursuant to the understanding, the use of advantages for special credit institutions resulting from *Anstaltslast* and other state guarantees relevant under the state aid rules is allowed for the performance of promotional tasks at the request of the state in promotional areas like financing of small and medium enterprises, infrastructure, environment-friendly investment, housing as well as cooperation with developing countries. Activities, which do not fall under the areas in line with the state aid rules, must either be discontinued by the special credit institutions or be spun-off to legally independent subsidiaries without state support.

With the adoption of the Restructuring Law, the description of our permissible activities in the Rentenbank Law was conformed to the language in respect of which the Federal Republic and the Commission of the European Union reached an understanding on March 1, 2002.

Based on the foregoing, Rentenbank does not currently expect that it will be required to either discontinue or separately incorporate any material portion of its present business activities as a result of the understanding.

***Supervision by the Federal Government***

The Rentenbank Law prescribes our internal governance structure, our capital structure, the limited scope and nature of our lending activities and provides for supervision of us by the Federal Republic. Although our day-to-day operations are managed independently by our Management Board with supervision by our Supervisory Board, the Federal Republic exercises supervision through the Federal Ministry of Agriculture, Food and Regional Identity ("Supervising Authority") which exercises its supervision in concert with the Federal Ministry of Finance.

The statutory function of the Supervising Authority is to ensure that the operations of Rentenbank are consistent with the public interest in particular in the promotion of agriculture and rural areas, and are in compliance with German law. The Supervising Authority may request information regarding our operational matters, inspect our books and records and participate in all Supervisory Board meetings and General Meetings with the authority to issue motions and to comment on topics at such meetings. In addition, the Supervising Authority has the authority to request a meeting of any of our three governing bodies and is authorized to prevent the implementation of any resolution that is against public interest or violates German law.

We are also subject to banking supervision and regulation by the Federal Financial Supervisory Authority (*Bundesanstalt für Finanzdienstleistungsaufsicht*; "BaFin") and the German Central Bank ("Deutsche Bundesbank") under the KWG. See "Supervision and Regulation" and "The Federal Republic of Germany — Financial Supervision Authority".

From November 4, 2014, until June 26, 2019, Rentenbank was among the banks considered significant under the Single Supervisory Mechanism ("SSM"), and was thus subject to European Central Bank ("ECB") supervision.

On June 27, 2019, new EU rules revising the Capital Requirements Regulation ("CRR") and the Capital Requirements Directive ("CRD") became effective ("CRR II" and "CRD V"). The new rules provide for an explicit exemption of Rentenbank from the scope of the CRD. Consequently, Rentenbank is not part of the SSM anymore and no longer subject to supervision by ECB. Instead, BaFin and Deutsche Bundesbank have taken over supervisory responsibility. See also "— Supervision and Regulation — General / Regulatory changes in the banking sector on EU level".

**Sustainability**

Sustainable agriculture is the indispensable prerequisite and essential basis for a sustainable society. Agriculture plays a key role in climate and environmental protection because it is a critical part of both the problem and the solution. As a promotional bank, it is our duty to help the agriculture industry further reduce harmful effects on the climate and the environment and extend its role as a producer of ecosystem conservation services and sustainable raw materials.

Our Mission Statement expresses our self-concept and our values. Together with our Code of Conduct and our risk culture, it forms the basis for ethically correct conduct at Rentenbank. The Mission Statement and Code of Conduct can be viewed on Rentenbank's Sustainability Portal.

We are committed to the Sustainable Development Goals (SDGs) of the United Nations and the goals of the Paris Climate Agreement. Based on our Sustainability Guidelines, we set and update goals and define appropriate measures, indicators, and responsibilities to ensure and monitor the attainment of those goals on an annual basis. Rentenbank's sustainability activities are coordinated by its sustainability managers.

By coordinating intraorganizational workstreams, the sustainability managers ensure that the necessary framework conditions and regulations are met and that current trends and developments are taken into account at Rentenbank. They also assist the responsible units with operational implementation.

Sustainability topics are handled by cross-divisional and cross-departmental work groups, which address specific topics such as the improvement of sustainability performance in banking operations and the development of sustainability-related financing products. The work groups are also tasked with the implementation of regulatory requirements and the execution of the sustainability programme.

Strategically important sustainability issues are discussed in the Sustainability Board, whose task is to oversee and coordinate bankwide sustainability activities. The Sustainability Board operates as a bankwide body of experts with the participation of all relevant executive officers and the Management Board. Moreover, the sustainability managers inform the participants about newly arising sustainability-related issues at the meetings of the Sustainability Board. Important decisions related to Rentenbank's sustainability performance and strategic orientation are presented to the Management Board in the form of draft resolutions for adoption. The Management Board bears overall responsibility for Rentenbank's sustainability activities.

Starting in 2025, Rentenbank voluntarily publishes an annual standalone sustainability report that takes the European Sustainability Reporting Standards (ESRS) as guideline. The report is based on a materiality assessment that considers both how sustainability issues may impact Rentenbank's financial performance (outside-in perspective) as well as how Rentenbank's activities affect society and the environment (inside-out perspective). The sustainability report can be accessed on Rentenbank's website.

***Areas of activity***

Rentenbank's business and sustainability strategies are closely linked. While ESG (environment, social and governance) criteria are being integrated into its core business, Rentenbank is focused on the following areas of activity: sustainable corporate governance, sustainable banking, sustainable human resources management, and sustainable banking operations.

Rentenbank's Sustainability Guidelines are structured along these areas of activity. They were introduced in 2021 and reflect Rentenbank's understanding and level of ambition relative to our central goal of acting as a sustainable enterprise and transformation bank in the field of agriculture in Germany.

Under our sustainability program, we define annually updated objectives and formulate the associated measures, indicators, and responsibilities to ensure and monitor the achievement of these objectives. Each objective is connected to at least one of the sustainability issues that were deemed material in the materiality assessment. The Management Board and the Sustainability Board are regularly informed of the status of implementation.

Beyond its internal initiatives, Rentenbank is committed to national and international initiatives which contribute to sustainable development. Therefore, Rentenbank subscribes to the United Nations Universal Declaration of Human Rights. Within its sphere of influence, Rentenbank respects and protects the universal human rights and the core labour standards of the International Labour Organization (ILO) (cf. ILO Declaration on Fundamental Principles and Rights at Work). As a member of the International Capital Markets Association, Rentenbank conforms with ICMA Green Bond Principles and is making a contribution to further developing the market for sustainable issuances. Rentenbank is a signatory of PCAF (Partnership for Carbon Accounting Financials). The comprehensive compliance with legal and internal requirements for the Prevention of Fraud and Corruption and Prevention of Money laundering is a mandatory prerequisite for Rentenbank's successful operations.

**BUSINESS**

Our principal business is providing loans and other types of financing for the German agricultural and forestry sectors, viticulture and horticulture sectors as well as in aquaculture and fisheries. Funds are also provided for projects in the food industry and other upstream and downstream companies as well as investments in renewable energies and projects for rural development. The principal purpose of loans granted is the promotion of agriculture, agribusiness and rural development. We do so primarily by extending credit to German private and public sector banks, both by means of traditional loans and by purchasing the debt securities of such banks. These banks then lend the proceeds to eligible borrowers. According to the Rentenbank Law, our lending activity should generally be conducted through or in conjunction with other financial institutions. Accordingly, other than direct lending to certain affiliates and companies, German regional state governments and specific agencies of the Federal Republic, our policy is to lend almost exclusively to financial institutions.

Throughout this description and in our financial statements included in Exhibit (e) to this annual report, we classify short-term loans as those due within one year from origination, medium-term loans as those due from between one year and five years from origination, and long-term loans as those due after five years from origination.

We provide credit to financial institutions to be loaned to borrowers engaged in the following activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Agriculture, Forestry, Horticulture and Fisheries*. This sector includes ultimate borrowers engaged
 in all types of agricultural production, forestry, horticulture and fisheries. It also includes
 ultimate borrowers engaged in related businesses such as manufacturers and distributors of
 machinery, fertilizers and other goods used in farming, forestry, aquaculture and fisheries
 as well as commercial and service businesses with close links to agriculture and forestry
 (for example, those trading in rural products, timber, livestock or agricultural equipment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Agribusiness*.
 Eligible ultimate borrowers in this sector include businesses involved in the processing
 or distribution of food products in all market segments, including businesses in the commodity
 and luxury food industries and food wholesale as well as other downstream and upstream industries
 like producers of fertilizer, feed or agricultural machinery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Renewable Energy.* This sector includes businesses involved in the production of power, heat or
 fuel based on biomass, including biogas-production and biomass-fuel-production. This sector
 also covers lending for photovoltaic or wind farms in rural areas or if the borrowers are
 closely linked to agriculture, forestry, horticulture, fisheries or the food industry. This
 moreover includes civic engagement in the production of wind power.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Rural Infrastructure*. This category covers lending for activities intended to improve rural
 infrastructure, including drinking water treatment and distribution, broadband coverage,
 sewage and waste treatment, land consolidation, environmental protection, public transportation,
 housing and job creation and protection in rural municipalities. As a rule, eligible projects
 must be in municipalities with populations of fewer than 50,000 persons.

Although we provide credit to banks which make loans to ultimate borrowers engaged in these activities, we do not separately record in our financial statements included in Exhibit (e) to this annual report the loan amounts that are extended by such banks for each of the above named activities.

Furthermore, Rentenbank carries out promotional activities on behalf of the German federal government (mandate business). In addition, Rentenbank supports innovation and start-ups. We attach great importance to the promotion of innovation and new technologies for a sustainable and therefore viable agriculture and food industry. We support the entire innovation process from practical testing to market introduction and scaling of especially innovative methods and products. Furthermore, Rentenbank invests as a limited partner in venture capital funds which focus primarily on AgTech and FoodTech, in order to not only close the financial gap, but also to initiate active transformation in the agricultural and food industry. Growth capital is one of the most important drivers for the development of innovation and the establishment of new technologies and business models. .

**Loans to Banks and Customers**

We extend credit by making traditional loans and by purchasing the debt securities of German or other EU-banks, German Federal States, German rural districts or German municipalities. Our traditional loan portfolio (as described below) consists primarily of special promotional loans and accounted for 62.8% of our loan portfolio at December 31, 2025. For a further description of our traditional lending activities, see "— Loan Portfolio" below.

To bolster innovation in Germany, Rentenbank has been investing in venture capital since February 2022. Rentenbank invests in venture capital funds focused on the areas of agtech and foodtech.

**Loan Portfolio**

The following table shows the special promotional loans and registered bonds and promissory notes *(Schuldscheine)* portion of our loan portfolio at December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **At December 31,** | **At December 31,** |
|  | **2025** | **2024** |
|  | **(EUR in millions)** | **(EUR in millions)** |
| Special promotional loans | 38062 | 39279 |
| Registered bonds/ promissory notes | 22581 | 23052 |
| Total | 60643 | 62331 |

---

The following table provides a breakdown of our loan portfolio according to maturity at December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **At December 31,** | **At December 31,** |
|  | **2025** | **2024** |
|  | **(EUR in millions)** | **(EUR in millions)** |
| Loans to Financial Institutions: |  |  |
| &nbsp;&nbsp;&nbsp;Long-term (five years or more) | 21725 | 23161 |
| &nbsp;&nbsp;&nbsp;Medium-term (between one year and five years) | 23876 | 25112 |
| &nbsp;&nbsp;&nbsp;Short-term (less than one year) | 8122 | 7228 |
| Direct Loans: |  |  |
| &nbsp;&nbsp;&nbsp;Long-term (five years or more) | 2791 | 3225 |
| &nbsp;&nbsp;&nbsp;Medium-term (between one year and five years) | 3345 | 3238 |
| &nbsp;&nbsp;&nbsp;Short-term (less than one year) | 784 | 367 |
| Total | 60643 | 62331 |

---

Our portfolio of traditional loans consists primarily of special promotional loans and medium- and long-term registered bonds and promissory notes. As noted above, we classify short-term loans as those due within one year from origination, medium-term loans as those due from between one year and five years from origination, and long-term loans as those due after five years from origination. Our loan portfolio at December 31, 2025, totaled €60.6 billion, a decrease of 2.7% from €62.3 billion at December 31, 2024. At December 31, 2025, this loan portfolio represented 67.0% of our total assets.

Our special promotional loans accounted for 62.8% of our loan portfolio at the end of 2025 compared with 63.0% of our loan portfolio at the end of 2024. They are composed almost exclusively of secured loans to German public sector and private sector banks. These medium and long-term loans are made to banks which loan the proceeds to ultimate borrowers who meet the qualifications under one of our special promotional loans designed to further agriculture and rural development-related policy goals. The interest rate on these loans is generally close to our own cost of funds and the terms and conditions of the corresponding loan made to the ultimate borrower are generally more favorable to the ultimate borrower than would otherwise be commercially obtainable.

Our registered bonds and promissory notes accounted for 37.2% of our loan portfolio at December 31, 2025, compared with 37.0% of our loan portfolio at December 31, 2024. It is mainly composed of secured and unsecured loans to German public sector and private sector banks as well as to banks in the EU. *Landesförderinstitute*, promotional institutes of the federal states established by the different German Federal States, *Sparkassen*, a type of public sector savings banks, and *Landesbanken*, public sector universal banks, are the principal German public sector banks to which we lend.

For information on our review process for approving borrowing banks, see "— Eligibility of Financial Institutions" below.

***Registered bonds and promissory notes***

Borrowing terms on registered bonds and promissory notes are negotiated with each bank and reflect, among other things, an evaluation of the borrower's creditworthiness and prevailing market conditions. In our risk evaluation, we consider, among other things, the term of the loan, the creditworthiness of the borrowing bank, our existing credit exposure to the particular borrowing bank and, if applicable, the country risk. We conduct an annual review of roughly 800 private and public sector bank borrowers to ensure that these borrowers continue to meet minimum credit standards. Under the terms of our loans, we generally rely on the creditworthiness of the intermediate financial institution. See "–– Credit Analysis".

At December 31, 2025, 9.7% of our notional loan portfolio amount was unsecured, as compared with 9.0% of our notional loan portfolio at December 31, 2024. Unsecured loans to German and other private sector banks in the EU as well as the United Kingdom, Norway, Switzerland, Australia and Canada are made only after a thorough review of the borrowing bank's creditworthiness.

We also purchase registered bonds and promissory notes issued by private and public sector banks located in other EU countries as well as in the United Kingdom, Norway, Switzerland, Canada and Australia. Although there is no legal restriction on the amount of funds we may lend into any one country, as a matter of internal policy we have set aggregate lending limits for each country into which we lend. Finally, we purchase registered bonds and promissory notes issued by German Federal States, German rural districts or German municipalities.

***Short-Term registered bonds and promissory notes***

Short-term loans are granted to both financial institutions and non-financial institutions by the purchase of short-term registered bonds and promissory notes. The bulk of our lending through registered bonds and promissory notes consists of loans made to banks and other financial institutions in the wholesale markets.

***Special Promotional Loans***

Special promotional loans are extended under programmes designed to further specific policy goals defined by our Supervisory Board. In addition, we administer other loan programmes on behalf of the Federal Republic and some German Federal States. Borrowers must meet the defined requirements to borrow under one of these programmes. Unlike our registered bonds and promissory notes, under these special promotional loan programmes, we review the ultimate borrower's eligibility. The final credit decision is made by the local bank (*Hausbank*) of the ultimate borrower.

Through the following special promotional loans, we reduce the interest rates of our loans or grant additional subsidies to specific groups in order to further our promotional objectives. The structure of the special promotional loan programmes allows us the promotion along the entire food value chain. Loans are generally limited to €10 million per business per year. Included are loans issued by some promotional institutions of the German Federal States which use liquidity facilities for specific promotional purposes in their respective federal state. The global loans provided are used for the comprehensive refinancing of loan programmes of the individual German Federal States intended for the promotion of the agricultural business and rural areas. These programmes are (1) set up by the promotional institutions of the German Federal States and primarily include the financing of local structural measures, residential construction and wastewater plants or (2) are promotional loan programmes with added value (e.g. lower interest rate) on behalf of the promotional institution. The promotional institutions of the German Federal States are either guaranteed by law by the respective federal state or receive a loan guarantee explicitly issued.

· *Special promotional loan line for financings in agriculture, forestry, aquaculture and fisheries:* Under these programmes, we finance medium- and long-term loans to individual ultimate borrowers
 who (1) lease or own farms, (2) own or manage forest, (3) produce agricultural
 products or (4) produce fishery products. These loans are offered to purchase or modernize
 new farm or fishery equipment and buildings, to purchase new land, forest or an existing
 farming or fishing operation. They can also be used for agricultural inputs. To qualify for
 the particularly low interest rates, they are (a) up to 40 years of age or (b) invest
 in the conservation of natural resources such as investments in energy efficiency, organic
 farming as well as measures to improve animal welfare and consumer protection. Forestry,
 they are offered *i.a.* for first afforestation or conversion of silviculture to adjust
 to climate change. 28.8% of new business in special promotional loans made during the year
 ended December 31, 2025, were of this type;

· *Special promotional loan lines for financing in agribusiness:* To further strengthen the agricultural
 businesses we offer loans to upstream and downstream enterprises along the entire value chain
 in the agricultural sector and the food industry. As such, for example, custom farming, seed
 production as well as milk processing and the retail of agricultural products are favored
 target groups. Loans at particularly low interest rates are offered for the conservation
 of natural resources including energy saving, water pollution control, the use of alternative
 power or investments in direct marketing of agricultural products. 12.7% of new business
 in special promotional loans made during the year ended December 31, 2025, were of this
 type;

· *Special promotional loan line for financings in renewable energy*: Investments by agricultural
 or agribusiness enterprises in renewable energy are promoted by this programme. This includes
 wind and water power and the use of biomass for energy production such as biogas plants and
 combined heat and power plants. This also includes investments in wind energy by local citizens
 and farmers. 26.8% of new business in special promotional loans made during the year ended
 December 31, 2025, were of this type;

· *Special promotional loan line for financings in rural development:* Under these programmes, we
 make available medium- and long-term loans to (1) private individuals and private organizations
 for the preservation and restoration of agricultural buildings. The use of loan proceeds
 is restricted to restoring agricultural buildings (even if they are no longer used for farming
 activities), construction of buildings related to the improvement of cultural or recreational
 pursuits in rural areas (such as youth centers) and activities related to creating or retaining
 jobs in rural areas. Loans are also granted (2) to rural municipalities and enterprises
 in rural areas for infrastructure development projects. The use of loan proceeds is restricted
 to improvements of local infrastructures such as the construction of waste treatment facilities,
 road construction, expansion of broadband infrastructure, the development of regional tourism.
 3.1% of new business in special promotional loans made during the year ended December 31, 2025,
 were of this type; and

· *Special promotional loans in cooperation with promotional institutions of the German Federal States:* These programmes account for 28.6% of new business in special promotional loans made
 during the year ended December 31, 2025. It is driven by our business with promotional
 institutions of the German Federal States which is focused on rural development. For further
 cooperation with the German Federal States see "— Activities on Behalf of the
 Federal Republic and German Federal States Governments".

Although we review the applications and the eligibility of the ultimate borrower, special promotional loans are disbursed through local banks or other financial institutions that identify potentially qualified borrowers under one of our loan programmes. Participating financial intermediaries earn a fixed interest margin set by the German risk adjusted pricing model (*Risikogerechtes Zinssystem; "RGZS*"), currently 1.00% p.a. up to 7.40% p.a. according to the credit rating of the ultimate borrower and/or the value of collateral provided, on loans extended these loan programmes. Special promotional loans have maturities of four to more than 20 years and, in the case of loans of more than ten years, usually include an adjustable interest rate mechanism whereby we reset the interest rate after ten years. Unlike registered bonds and promissory notes, special promotional loans are secured by an assignment of the underlying loan and the right to require a transfer of the collateral in which the lending bank has a security interest.

**Eligibility of Financial Institutions**

Consistent with our purpose of providing financing to the agricultural sector, the food industry and rural development, we select financial institutions to which we make loans based on their lending activities in these areas. In our review process, we generally exclude institutions which are clearly not involved in these areas, such as consumer finance institutions and investment banks. Of the remaining institutions, we review their annual reports and other documents to check the consistency of their activities with our purposes. If their lending activities are consistent with our purposes, they are approved as potential borrowers, subject to credit approval. For local and regional banks, we assume that these banks are involved in the development of their local rural areas, and they are included as potential borrowers.

Under our special promotional loans, we review the applications of the end borrowers and ensure their loan eligibility based on a review of their stated purpose for using the proceeds of the loan. Once approved, the loan is issued through one of the banks to which we lend. For a further description of our special promotional loans, see "— Special Promotional Loans" above.

**Securities Portfolio**

In addition to our traditional loan portfolio, we are also active in providing financing through the purchase of debt securities of German and other banks in the EU, the United Kingdom, Switzerland, Canada, Norway and Australia as well as supranational institutions. The guidelines for our securities portfolio are similar to those we use for our loan portfolio. Just as we restrict loans to financial institutions active in the financing of the agriculture, forestry, horticulture, fishing industry and rural development in Germany and EU countries, in the context of our securities business we purchase the debt securities of financial institutions active in the above mentioned areas. Debt securities issued by the EU, banks in Switzerland, the United Kingdom, Canada, Norway and Australia can only be purchased for treasury management purposes or investment of own funds. At December 31, 2025, the securities portfolio accounted for 20.9% of total assets, as compared with 17.6% at December 31, 2024. Of our portfolio of debt securities, at December 31, 2025, 8.5% were issued by public issuers, compared to 5.8% at December 31, 2024.

The following table shows the aggregate carrying amount of our securities portfolio at December 31, 2025 and 2024.

**Securities Portfolio**

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| | | |
|:---|:---|:---|
|  | **At December 31,** | **At December 31,** |
|  | **2025** | **2024** |
|  | **(EUR in millions)** | **(EUR in millions)** |
| From public issuers | 1610 | 978 |
| From other issuers | 17339 | 15765 |
| Total securities | 18949 | 16743 |

---

**Subsidiaries**

At December 31, 2025, we hold interests in two affiliated companies: LR Beteiligungsgesellschaft mbH ("LRB") and DSV Silo- und Verwaltungsgesellschaft mbH ("DSV"), both located in Frankfurt am Main.

LRB is a holding company that owns equity interests in DSV. Rentenbank owns 100% of LRB's outstanding capital. At December 31, 2025, LRB had total assets of EUR 93.7 million according to the annual financial statements prepared in accordance with German commercial law. LRB owns 100% of the outstanding capital of DSV. At December 31, 2025, DSV had total assets of EUR 4.0 million, according to the annual financial statements prepared in accordance with German commercial law. DSV only manages own funds to secure pension payments to its former employees and those of Getreide-Import-Gesellschaft mbH, which was merged into DSV retrospectively effective as December 31, 2023.

**Activities on Behalf of the Federal Republic and German Federal States** (***Bundesländer)* Governments**

Rentenbank Law requires us to allocate at least one-half of our net income, after allocations to the principal reserve and guarantee reserve, to a special purpose fund (*Zweckvermögen*) that was formed pursuant to the Law on Agricultural Disencumbrances of March 25, 1952 (*Gesetz zur Abwicklung der landwirtschaftlichen Entschuldung*). We administer this fund as trustee for the Federal Republic. We issue loans or grants from this fund as instructed by the Federal Minister of Agriculture, Food and Regional Identity. To pave the way for innovative ideas to reach the market, we have since July 2021 promoted agriculture-related start-ups in the early financing phase from the special purpose fund. Up to one-half of our remaining net income is allocated to a promotional fund (*Förderungsfonds*), the disbursement of which is determined by the General Meeting.

We are also enabled to act on behalf of German Federal States and the Federal Republic in administering other sponsored loan programmes. Together with the federal government and the German Federal States, Rentenbank can also set up special promotional loans for agricultural enterprises to provide liquidity or support other promotional purposes that combine favourable refinancing on capital markets of Rentenbank with public funding. This was for example the case due to financial crises and low prices for agricultural products, where state subsidies were used to lower the interest rate for ultimate borrowers.

Besides our special promotional loan programmes for investments in infrastructure of rural municipalities, we also promote rural development by offering global loans to the promotional banks of the German Federal States.

In addition, the Federal Government has commissioned Rentenbank with implementing additional federal programmes: "The Digitalisation and Technology for the Sustainable Forestry Management programme" began on November 2, 2020. The programme aims to preserve forests and make relevant adjustments for climate change. Applications ended 2021. Another federal programme, "The Promotion of Investment and Future Programme for Agriculture" started on January 11, 2021 and ended on December 31, 2024. The aim was to promote more environmentally-friendly techniques for land cultivation in order to protect the climate and improve biodiversity. Both programmes combined grants from the Federal Government with loans from Rentenbank. From 2021 to 2024, we have committed grants of €532.5 million in "The Promotion of Investment and Future Programme for Agriculture". As the latest example, Rentenbank has been offering a subsidy programme, the "Action Programme Natural Climate Protection" (ANK), on behalf of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) since July 2024. The purpose of this programme is to promote investments in machinery and equipment that enhance the carbon storage function of soil and increase biodiversity in agricultural areas. In 2025, we have committed grants of €35.4 million for these purposes.

**New Business**

The following table shows the notional amount of our new business:

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| | | |
|:---|:---|:---|
|  | **For the Year Ended<br> December 31,** | **For the Year Ended<br> December 31,** |
|  | **2025** | **2024** |
|  | **(EUR in millions)** | **(EUR in millions)** |
| Loan commitments<sup>(1)</sup>: | 8284 | 5843 |
| &nbsp;&nbsp;&nbsp;Registered bonds/promissory notes (\*) | 1725 | 2241 |
| &nbsp;&nbsp;&nbsp;Special promotional loans | 6559 | 3602 |
| Venture capital investments | 21 | 48 |
| Securities (\*) | 3464 | 2033 |
| Total extensions of credit (\*) | 11769 | 7924 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Loan commitments represent the volume
 of funds committed in the relevant period, including amounts to be disbursed in future periods,
 and do not include amounts disbursed in the relevant periods pursuant to commitments made
 in prior periods.

(\*) Without non-EU

**Sources of Funds**

Our principal sources of funds are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· borrowings
 in the interbank market from counterparties in countries of the Organization for Economic
 Cooperation and Development ("OECD"), Eurex Repo transactions and issuances of
 commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 participation in open market transactions and standing facilities within the European System
 of Central Banks ("ESCB"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· issuances
 of loans, registered bonds and notes, bearer bonds and notes, promissory notes and other
 types of debentures for short- to long-term funding purposes.

Rentenbank is an active participant in the interbank market. Borrowings are limited to banks domiciled in countries of the OECD. Maturities range from overnight money to 12 months deposits. Furthermore, we obtain short-term funding by issuance under our EUR 20 billion Commercial Paper Programme ("ECP Programme"). This issuing programme enables us to issue notes on a discounted, compounded or index basis with maturities from 1 day up to 364 days which are mainly placed with international institutional investors.

The participation in open market transactions and the standing facilities within the ESCB gives us access to a range of additional instruments to manage short-term liquidity. We can obtain short-term funds by participating in the main refinancing operation, the longer-term refinancing operation, fine-tuning operations or by borrowing overnight funds under the marginal lending facility. Our access to these funds is limited by the borrowing value of available collateral in our account with Deutsche Bundesbank.

We also obtain funding in the international capital markets, both through various issuing programmes and through stand-alone issuance of various types of unsecured notes and debentures. The issuing programmes include a EUR 70 billion Euro Medium Term Note Programme (the "EMTN Programme") and an AUD 15 billion Australian Dollar Domestic Medium Term Note Programme (the "AMTN Programme"). We have a shelf registration statement in the United States for debt securities. Issuances of promissory notes and international loans complement our funding instruments.

The international capital markets continue to represent the most important source of financing for us. In the year ended December 31, 2025, we issued the equivalent of €7.6 billion of medium and long-term Euro Medium Term Notes, € 0.6 billion of AUD Medium Term Notes and € 2.6 billion of SEC registered debt securities. We use derivative instruments to hedge our currency and interest rate exposure in connection with such issuances. See "— Risk Management and Derivatives" below.

With respect to the domestic and international capital markets, the following table shows our sources of funds based on the carrying amount during each of the years indicated.

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| | | |
|:---|:---|:---|
|  | **At December 31,** | **At December 31,** |
|  | **2025** | **2024** |
|  | **(EUR in millions)** | **(EUR in millions)** |
| International Loans / Promissory notes | 30.0 | 550.0 |
| Domestic bonds <sup>1</sup> | 1365.9 | 1475.4 |
| International bonds <sup>2</sup> | 79975.3 | 83286.3 |
| Total | 81371.2 | 85311.7 |

---

<sup>1</sup> Registered bonds (*Namensschuldverschreibungen*) issued in the domestic market

<sup>2</sup> Bearer bonds (*Inhaberschuldverschreibungen*) and registered bonds issued and sold pursuant to the EMTN Pro**g**ramme and the AMTN Programme as well as registered bonds issued and sold under the shelf registration statement filed with the SEC

**Liabilities to Customers**

Our liabilities primarily consist of debt securities, liabilities to banks and liabilities to customers. See "— Sources of Funds" above for a description of our funding activities related to debt securities and our liabilities to banks. 82% of our liabilities to customers consist of registered bonds, international loans and promissory notes that are purchased by insurance companies. The remaining amount of liabilities to customers consists of liabilities to individual German Federal States, as well as other local governments. These liabilities are uncertificated and arise from credit accounts with these governments.

**Risk Management and Derivatives**

Our risk control department has responsibility for our market price and liquidity risk management system as well for the credit risk including rating methodologies, operational and strategic risk control and is overseen directly by the Management Board. The risk control department applies for and the Management Board determines market, liquidity, credit and non-financial risk limits. All risks are limited and covered within the Capital Adequacy Assessment Process (ICAAP) or the Liquidity Adequacy Assessment Process (ILAAP) in compliance with the regulatory requirements. Daily reports are generated by the risk control unit, which analyzes whether our money market, loan and securities portfolios are within market and liquidity risk limits prescribed by the Management Board. The market risk report analyzes the effect on our money market, liquidity and credit portfolio of a defined parallel shift of the yield curve. With respect to liquidity risk, our daily liquidity deficit, also in severe stress scenarios is never greater than the amount of our eligible collateral with Deutsche Bundesbank. The Credit division applies for, and the Management Board approves, the counterparty credit limits for derivatives. Credit risk, including counterparty credit risk, is monitored on a bank-wide basis as part of our annual review of borrowing customers. See "— Registered bonds and promissory notes". The front office is responsible for the risk management within existing limits.

We use derivatives exclusively as hedging instruments for existing or expected market price risks on the basis of micro or macro hedges. Purchases and sales of derivative instruments are made for hedging purposes in an effort to match as closely as possible the currency, duration and interest rate basis of our assets and liabilities. We minimize credit risk from fair value fluctuations by means of appropriate risk-mitigation measures set out in credit support annexes with every derivative counterparty. No derivative activities are undertaken on behalf of clients. Risks are analyzed in accordance with the KWG which requires adequate capital coverage for securities transactions, transactions in derivative products and foreign exchange transactions. See "Supervision and Regulation".

Pursuant to the KWG we are obliged to maintain an adequate risk management which needs to ensure that the risk load capacity for credit, market-price, liquidity, operational and strategic risks are covered at all times. Based on our calculations our total capital permanently exceeds our risk profile.

**Credit Analysis**

We examine whether credit should be extended in response to direct inquiries either from potential borrowers themselves or from third parties such as other banks or brokers. This examination includes whether we can provide funds based on the applicable laws and regulations that govern Rentenbank.

An application for credit and creditworthiness is judged on the basis of our own credit analysis and supported by a diverse set of documents such as business reports and ratings. Approval for the extension of credit is made in compliance with our own credit approval regulations. Only after this approval are transactions allowed to go forward.

**Currency Risk**

As of December 31, 2025, a notional amount of €0.0 billion of liabilities to customers and €30.3 billion of securitized liabilities were denominated in a currency other than euro. Because our loan business is denominated almost exclusively in euro, we have eliminated currency risk by swapping the cash-flows from foreign denominated non-derivative issues virtually exclusively into euro through so-called cross-currency swaps, or, in the case of commercial paper, FX-swaps.

As of December 31, 2025, a notional amount of €0.1 billion of loans and advances to banks and €3.2 billion of financial investments were denominated in a currency other than euro. Those assets were either funded in the respective currency or hedged through a foreign currency swap.

**Liquidity Management**

We manage our liquidity based on a projection of all future cash flows. On a daily basis, we calculate the projected net liquidity balance for each day of the coming two years. Instruments available for managing the short-term liquidity position are interbank funds, Eurex Repo transactions, ECP issuances, and the participation in open market transactions and standing facilities within the ESCB. In addition, we calculate the medium and long-term liquidity of inflows and outflows of more than two years for the next 15 years on a daily basis.

**Impact of Climate Change on Rentenbank's Business Activities**

In Germany, existing and proposed environmental laws and regulations aim at supporting environmentally friendly technology and procedures. An important law in this context is the German Renewable Energy Act (*Erneuerbare-Energien-Gesetz*), which promotes the development of renewable energy sources, such as the production of energy from biomass and the use of solar energy, by providing for financial contributions to energy producers. Our ultimate borrowers have increasingly used our lending services in order to invest in such renewable energy sources. Environmental, Social and Governance (ESG) factors are in the focus of the regulators and not least in the focus of the risk management of Rentenbank.

In its promotional activity, Rentenbank ensures the funding of local banks that grant its special promotional loans. The local bank bears the default risk of the ultimate borrower. Rentenbank's customers are mainly classified as banks or German state institutions. The Bank does not invest directly in agriculture and forestry.

Rentenbank analyzes the potential effects of sustainability risks, including those arising from climate change. Various ESG scenarios focused on climate and environmental risks have been analyzed and the potential effects of climate change on Rentenbank's capital and risk situation have been examined since 2020. After a revision in 2025, two climate scenarios are used to assess climate-related risks. For the medium to long-term perspective up to 2050, Rentenbank uses a reference scenario from the Network for Greening the Financial System (NGFS), which maps both physical and transition risks. In addition, a short-term climate scenario, which is also based on NGFS pathways, is used as part of capital planning. The respective scenarios show potential adverse effects under the respective assumptions but, based on the information currently available, do not have a material adverse effect on Rentenbank's financial position, financial performance or capitalization in the short, medium or long-term.

We cannot predict the ultimate effect future climate change legislation and regulation could have on our borrowers' businesses. However, through our promotional activities, we support our end borrowers in either mitigating climate change through environmentally friendly technologies or adapting to risks arising from climate change.

**CAPITALIZATION**

The following table shows Rentenbank's capitalization based on the carrying amount as of December 31, 2025. Long-term debt includes all borrowings and bonds issued with remaining maturities in excess of one year.

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2025** |
|  | **(EUR in millions)<sup>(1)</sup>** |
| Long-term debt from: |  |
| &nbsp;&nbsp;&nbsp;Banks | 64 |
| &nbsp;&nbsp;&nbsp;Other lenders | 1301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term borrowings | 1365 |
| &nbsp;&nbsp;&nbsp;Bonds | 67496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term debt | 67496 |
| Fund for general banking risks | 3576 |
| Equity: |  |
| &nbsp;&nbsp;&nbsp;Subscribed capital | 135 |
| &nbsp;&nbsp;&nbsp;Reserves<sup>(2)</sup> | 1292 |
| Total equity | 1427 |
| Total capitalization | 73864 |

---

(1) On May 7, 2026, the euro foreign
 exchange reference rate as published by the European Central Bank was EUR 1.00 = U.S. dollar
 1.177 (EUR 0.8496 per U.S. dollar).

(2) Includes principal reserve and
net profit for the year.

As of December 31, 2025, Rentenbank's total capital ratio as well as the Tier 1 capital ratio amounted to 32.6%. As in the prior year, Rentenbank met the regulatory requirements at all times in the reporting year. For a discussion of capital adequacy requirements under the KWG, see "Supervision and Regulation — Capital Adequacy Requirements".

**MANAGEMENT**

Pursuant to the Rentenbank Law we have three principal governing bodies: the Management Board (*Vorstand*), the Supervisory Board (*Verwaltungsrat*) and the General Meeting (*Anstaltsversammlung*). The business address of each of the members of the Management Board and the Supervisory Board named below is Theodor-Heuss-Allee 80, 60486 Frankfurt am Main, Federal Republic of Germany.

**Management Board**

The Management Board is responsible for the day-to-day conduct of our business and the administration of our assets in accordance with the Rentenbank Law and represents us in dealings with third parties and the judiciary. According to Rentenbank's Statutes, the Management Board is required to deliver to the Supervisory Board on a quarterly basis a written report on the business and financial condition of Rentenbank. In accordance with the general guidelines for the granting of loans which have been established by the Supervisory Board, the Management Board is required to report quarterly to the risk committee (*Risikoausschuss*) of the Supervisory Board regarding the development of unsecured credit and large exposures pursuant to the German banking regulations.

The Management Board is comprised of at least two members. Its members are appointed, and may be withdrawn by, the Supervisory Board by a two-thirds majority. The appointment of members of the Management Board requires the prior approval of the Supervising Authority.

The members of the Management Board are:

Dietmar Ilg (Chief Risk Officer)<br> Dr. Marc Kaninke (Chief Financial Officer/Chief Information Officer)<br> Nikola Steinbock (Chairwoman of the Management Board)

On December 19, 2025, the Board of Supervisory Directors appointed Dr. Oliver Engels as a new member of the Management Board. Dr. Engels has served as divisional director for Credit Risk Management, Risk Control, Operations Financial Markets as well as Cyber Security & Non-Financial Risk since January 1, 2026, and will serve as a full member of the Management Board for these divisions from July 1, 2027. For the period from July 1, 2026 to June 30, 2027, the Board of Supervisory Directors appointed Hubert Spechtenhauser as interim member of the Management Board responsible for these divisions. Dietmar Ilg, who joined Rentenbank in 2018 and is currently responsible for these divisions, will leave the bank at his own request as of June 30, 2026.

Rentenbank is not aware of any conflicts or potential conflicts of interest between the duties of each member of the Management Board to Rentenbank and such member's private interests or other duties.

**Supervisory Board**

The Supervisory Board supervises, and appoints members to and is entitled to remove members from, the Management Board. It may issue general and specific instructions to the Management Board. In particular, the Supervisory Board approves Rentenbank's annual report, adopts corporate governance principles, establishes general guidelines for the granting of loans, and allocates reserves consistent with the Rentenbank Law. Furthermore, the Supervisory Board adopts and may amend Rentenbank's Statutes with the approval of the Supervising Authority. In addition, the following actions require the approval of the Supervisory Board: the issuance of bearer debentures, the acquisition and sale of investments, the purchase and sale of land and buildings, approval of employment contracts involving annual compensation above a threshold determined by the nomination committee of the Supervisory Board (*Nominierungsausschuss*), and the issuance of pension guidelines. The Supervisory Board must meet at least semi-annually.

The Supervisory Board may delegate certain authorities to committees thereof. Rentenbank's Statutes require the Supervisory Board to form a risk committee (*Risikoausschuss*) concerned with the risk tolerance and risk strategy of Rentenbank, an audit committee (*Prüfungsausschuss*) concerned with financial and accounting matters, a remuneration committee (*Vergütungskontrollausschuss*) concerned with monitoring the adequacy of the remuneration systems, a nomination committee *(Nominierungsausschuss)* concerned with nomination, legal and administrative matters, and an expert committee (*Fachausschuss*) concerned with the allocation of retained earnings.

The Supervisory Board has 18 members, one of whom is the Federal Minister of Agriculture, Food and Regional Identity. Eight of the members of the Supervisory Board represent agricultural and food organizations, six of whom are appointed by the not-for-profit German Farmers' Association (*Deutscher Bauernverband e.V.*), one of whom is appointed by the not-for-profit Farmers' Mutual Savings Institution (*Deutscher Raiffeisenverband e.V.*) and one of whom is appointed by the various food organizations. Further, three members are ministers of agriculture of various German Federal States, one member each represents the Federal Ministry of Agriculture, Food and Regional Identity and the Federal Ministry of Finance. One member represents the not-for-profit trade unions. Finally, three members are elected as representatives of credit institutions or other credit experts.

The following is a list of the members of the current Supervisory Board:

---

| | |
|:---|:---|
| Chairman: | Joachim Rukwied,<br> President of the German Farmers' Association (DBV) |
| Deputy Chairman: | Alois Rainer,<br> Federal Minister of Agriculture, Food and Regional Identity |
| Representatives of the German Farmers' Association (DBV): | Dr. Holger Hennies,<br> President of the Farmers' Association of Lower Saxony |
|  | Torsten Krawczyk,<br> President of the Farmers' Association of Saxony |
|  | Stefanie Sabet,<br> Secretary-General of the German Farmers' Association (DBV)<br> (since 1 January 2026) |
|  | Karsten Schmal,<br> President of the Farmers' Association of Hesse |
|  | Susanne Schulze Bockeloh,<br> Vice President of the German Farmers' Association (DBV) |
| Representative of the German Raiffeisen Association: | Franz-Josef Holzenkamp,<br> President of the German Raiffeisen Association |
| Representative of the food industry: | Martin Courbier,<br> Managing Director of the Agricultural Trade – Federal Association of Agricultural Trade and Association of Grain Traders of the Hamburg Stock Exchange |
| State Ministers of Agriculture or their permanent official representatives:<sup>(1)</sup> |  |
| Baden-Württemberg: | Peter Hauk,<br> Minister for Food, Rural Affairs and Consumer Protection of the State of Baden-Württemberg<br> (since 1 January 2026) |
| Brandenburg: | Hanka Mittelstädt,<br> Minister for Agriculture and Food, Environment and Consumer Protection of the State of Brandenburg<br> (since 1 January 2026) |
| Hamburg: | Katharina Fegebank,<br> Second Major of the Free and Hanseatic City of Hamburg and Senator for the Environment, Climate, Energy and Agriculture of the Free and Hanseatic City of Hamburg<br> (since 1 January 2026) |

---

---

| | |
|:---|:---|
| Representative of the trade unions: | Harald Schaum,<br> Deputy Federal Chairman of the Industrial Union Construction, Agriculture and Environment (IG BAU) |
| Representative of the Federal Ministry of Agriculture, Food and Regional Identity: | Silvia Breher,<br> Parliamentary State Secretary<br> (since 24 June 2025) |
| Representative of the Federal Ministry of Finance: | Doris Dietze,<br> Head of Directorate<br> (since 19 June 2025) |
| Representatives of credit institutions or other credit experts: | Dr. Frank Czichowski,<br> Member of the Supervisory Board of Commerzbank AG |
|  | Stefanie Münz,<br> Member of the Management Board of<br> Landesbank Baden-Württemberg |
|  | Dr. Caroline Toffel,<br> Member of the Management Board of <br> Berliner Volksbank eG |

---

(1) The *Bundesrat*,
 the upper house of Germany's parliament, has established a rotational system pursuant
 to which every two years a different set of German states is represented on the Rentenbank's
 Supervisory Board.

Rentenbank is not aware of any conflicts or potential conflicts of interest between the duties of each member of the Supervisory Board to Rentenbank and such member's private interests or other duties.

**General Meeting**

The General Meeting advises Rentenbank in matters of the promotion of agriculture and rural areas as well as on general agricultural and business policy issues. Furthermore, it decides on the appropriation of the promotional fund in accordance with the Rentenbank Law. The General Meeting receives reports of the Management Board on our business activities and of the Supervisory Board on resolutions adopted by the Supervisory Board. According to the Rentenbank Law, each year a General Meeting must be held.

The General Meeting consists of 28 members representing owners and lessees of land subject to our land charges. The German Federal States of Baden-Württemberg, Bavaria, Brandenburg, Hesse, Mecklenburg-Western Pomerania, Lower Saxony, North Rhine Westphalia, Rhineland-Palatinate, Saxony, Saxony-Anhalt, Schleswig-Holstein and Thuringia each appoint two members to the General Meeting, and the German Federal States of Berlin, Bremen, Hamburg and Saarland each appoint one member.

**Corporate Governance**

In November, 2004 the Supervisory Board approved certain corporate governance principles for Rentenbank that regulate the conduct of its management. As a result, Rentenbank has voluntarily submitted to the relevant principles set forth in the German Corporate Governance Code. These principles include the regulation of conflicts of interest, compensation of members of the Management Board and the Supervisory Board, transparency and disclosure obligations and accounting and audit. Compliance with the German Corporate Governance Code is required by all German publicly-traded companies and recommended to all other German companies. Because Rentenbank is an institution established under public law, certain principles set forth in the German Corporate Governance Code, including principles governing the relationship with and meetings of shareholders, are not applicable to Rentenbank.

In 2007, the corporate governance principles were updated and a declaration of conformity (*Entsprechenserklärung*) was published for the first time on our website (www.rentenbank.de).

Rentenbank adopted the public Public Corporate Governance Code (Public Corporate Governance Kodex des Bundes, "PCGC"), as of June 30, 2009 as amended from time to time, as promulgated by the German federal government, by resolution of the Supervisory Board dated July 16, 2009. The PCGC is mainly addressed to companies that are legal entities under private law. However, unless legal provisions (such as the Rentenbank Law) require otherwise, application of the Code is also recommended for companies that are legal entities under public law. Rentenbank is a public law institution directly accountable to the German federal government.

**EMPLOYEES**

At December 31, 2025, we had 492 employees (interns, apprentices, employees on parental leave and members of the Management Board excluded). As a member of the German Association of Public Banks, Rentenbank applies the collective wage agreement concluded with the relevant trade union. As of December 31, 2025, 42.7% of Rentenbank's employees were paid according to the collective wage scale, while 57.3% were paid above the collective wage scale.

**SUPERVISION AND REGULATION**

**General**

The Rentenbank Law provides explicitly for our responsibility for the promotion of agriculture and of rural areas. For a further description see "General - Overview" above. The Federal Republic of Germany guarantees all existing and future obligations of Rentenbank in respect of money borrowed, bonds and notes issued and derivative transactions entered into by Rentenbank, as well as obligations of third parties that are expressly guaranteed by Rentenbank (the "Guarantee of the Federal Republic"). This is statutorily provided for by Section 1a of the Rentenbank Law. See also "General — Relationship with the Federal Government — Guarantee of the Federal Republic".

As a federal development bank, Rentenbank underlies federal influence by the representation of the Federal Government on the Supervisory Board. The Minister of Agriculture, Food and Regional Identity is deputy chairman of the Supervisory Board. Representatives of the Federal Ministry of Agriculture, Food and Regional Identity and the Federal Ministry of Finance are members of the Supervisory Board.

In addition, Rentenbank is subject to the supervision of the Federal Ministry of Agriculture, Food and Regional Identity which exercises its supervision in concert with the Federal Ministry of Finance. The statutory function of this Rentenbank-specific Supervising Authority is to ensure that the operations of Rentenbank adhere to public interest in the promotion of agriculture and rural areas, and are in accordance with German law and with Rentenbank's Statutes. The Supervising Authority may request information regarding our operational matters, inspect our books and records and participate in all Supervisory Board meetings and General Meetings with the authority to issue motions and to comment on topics at such meetings. In addition, the Supervising Authority has the authority to schedule a meeting of any of our three governing bodies and is authorized to prevent the implementation of any resolution that is against public interest or violates German law or Rentenbank's Statutes.

In accordance with Section 13 of the Rentenbank Law, Rentenbank may issue registered bonds and notes that are secured debt covered by a pool of eligible assets. These assets include covered bonds or debentures issued in accordance with the German Pfandbrief Act (*Pfandbriefgesetz*), loans to domestic statutory corporations (*Körperschaften*) and certain public institutions (*Anstalten des öffentlichen Rechts*) and loans for which sufficient collateral exists. Our total capacity to issue secured debt is based on the amount of our assets available for use as collateral for these debt securities. After consultation with Rentenbank, the Supervising Authority nominates a trustee (*Treuhänder*) and a deputy trustee. It is the responsibility of the trustee to ensure that issuance, administration and security of such bonds comply with the legal and regulatory requirements and the terms and conditions of the bonds. The current trustee is the senior government official Mr Alois Bauer and the current deputy is the senior government official Mr Martinus Wejwer.

We are authorized to carry out the types of banking business which are set forth in the Rentenbank Law. Since Rentenbank is – as well as other German promotional banks – exempted from the scope of the Capital Requirements Directive (CRD) the banking supervisory system for Rentenbank is based on the KWG. Rentenbank is therefore supervised by the national competent authorities BaFin and Deutsche Bundesbank. The KWG incorporates most of the European banking supervisory standards. The requirements of the CRR are applicable for us due to the reference in Section 1a KWG. As laid down in Section 2 paragraph 9i KWG the only part of the CRR which has not to be met are the requirements for disclosure according to Art. 431-455 CRR.

We are in compliance with the German and European laws that are applicable to our business in all material respects.

**KWG and CRR**

The KWG contains the principal rules for German banks, including the requirements for a banking license, and regulates the business activities of German banks.

Under the KWG, every entity that is engaged in one or more of the financial activities defined therein as "banking business" (*Bankgeschäfte*) is subject to the licensing requirements and other provisions of the KWG, unless specifically exempted therefrom.

Furthermore, significant parts of the regulatory framework for banks in the EU are governed by the CRR. The CRR applies directly to so-called "CRR credit institutions". However, due to the reference in Section 1a KWG, the requirements of the CRR generally also apply to non-CRR credit institutions such as Rentenbank. The CRR primarily sets forth the requirements applicable to us relating to regulatory capital, risk-based capital adequacy, monitoring and control of large exposures and liquidity. Additional regulatory and implementing technical standards are also applicable to us, and are developed by the European Supervisory Authorities ("ESAs") and adopted by the European Commission, by means of delegated or implementing acts. These so-called level 1 and 2 provisions are supported by guidelines and Q&As. Guidelines pursuant to Article 16 of the ESAs founding Regulations and Q&As pursuant to Article 29 of the ESAs founding Regulations are convergence tools intended to harmonize supervision in the EU, specifically through consistent application of EU law, a common supervisory culture and coherent supervisory practices. European Banking Authority ("EBA") guidelines, although not directly applicable, are, as a general rule, implemented into German law by BaFin ("comply or explain"-procedure).

Certain other requirements applicable to us, including those with respect to additional capital and organizational requirements, are set forth in the KWG and other German laws.

**Capital Adequacy Requirements**

The CRR requires banks to maintain an adequate level of regulatory capital in relation to their risk positions. Risk positions (commonly referred to as "risk-weighted assets") include credit risks (including Credit Valuation Adjustments for OTC derivatives due to deterioration in creditworthiness), market risks and operational risks (including, among other things, risks related to certain external factors, as well as to technical errors and errors of employees). The regulatory capital known as "own funds" can be classified into three components with different quality levels. The most important type of capital for compliance with the capital requirements under the CRR (see below) is "Common Equity Tier 1" capital ("CET1"). CET1 capital primarily consists of share capital, retained earnings and other reserves, subject to certain regulatory adjustments. Another component of capital is "Additional Tier 1" capital. These instruments have to comply with the requirements stated in Article 52 CRR and cannot qualify as CET1 items.

CET1 capital and Additional Tier 1 capital together constitute Tier 1 capital. The other type of capital is "Tier 2" capital which generally consists of long-term subordinated debt instruments. Tier 1 capital and Tier 2 capital together constitute "own funds".

Under the CRR, banks are required to maintain a minimum ratio of CET1 capital to risk-weighted assets of 4.5% and a minimum ratio of Tier 1 capital to risk-weighted assets of 6%. The minimum total capital ratio of own funds to risk-weighted assets is 8%.

In addition to the aforementioned capital adequacy requirements, banks must maintain a capital conservation buffer of 2.5% of the total risk exposure consisting of CET1 capital and an institution-specific countercyclical capital buffer between 0% and 2.5% (if necessary, the competent authority can set a rate of more than 2.5%) consisting of CET1 capital. Moreover, the competent authority may require all institutions or certain types or groups of institutions to maintain a systemic risk buffer of at least 0.5%, consisting of CET1 capital for exposures located in a European Economic Area ("EEA") state or a non-EEA state. Currently the systemic risk buffer of 4.5% for exposure located in Norway is relevant for Rentenbank.

Institutions that are not globally systemically important such as Rentenbank have to comply with the minimum requirement for a leverage ratio of 3%. The relevant capital measure is the Tier 1 capital. Promotional banks have the option to except certain exposure from the total exposure measure to strengthen their Leverage Ratio.

Rentenbank meets all reporting and minimum requirements for capital ratios and the leverage ratio.

**Liquidity Requirements**

According to Part 6 of CRR institutions have to fulfill a liquidity coverage requirement intended to ensure that banks have an adequate stock of unencumbered high-quality liquid assets that can be easily and quickly converted into cash to meet their liquidity needs in a 30 calendar day liquidity stress scenario. The required Liquidity Coverage Ratio ("LCR") is calculated as the ratio of a bank's liquidity buffer to its net liquidity outflows. Generally, institutions, have to meet a minimum LCR of 100%.

In addition, Part 6 of CRR requires banks to calculate a net stable funding ratio ("NSFR") to reduce medium- to long-term funding risks by requiring banks to fund their activities with sufficiently stable sources of funding. The NSFR indicates if an institution holds sufficient stable funding to meet its funding needs during a one-year period under both normal and stressed conditions. Institutions have to maintain a minimum NSFR of 100%.

The third requirement of Part 6 of CRR contains the reporting requirement for Additional Monitoring Metrics for liquidity reporting (AMM). AMM provides information about a bank's composition of liquidity which is neither included in the LCR nor in the NSFR and does not include a minimum requirement.

Rentenbank meets all reporting and minimum requirements for LCR and NSFR. Furthermore, Rentenbank meets all reporting requirements for AMM.

**Limitation on Large Exposures**

Part 4 of the CRR contains the requirements for large exposures, which limit a bank's concentration of credit risks. The KWG and the Large Exposures and Million Loan Regulation (*Großkredit- und Millionenkreditverordnung*) supplement on national level the CRR. The CRR defines large exposures as exposure to a single borrower or group of connected clients that equals or exceeds 10% of the bank's Tier 1 capital. Besides various monitoring and reporting requirements, large exposures must not exceed 25% of the bank's Tier 1 capital.

Rentenbank meets all reporting and maximum requirements for large exposures.

**Audits**

Under German law, Rentenbank must be audited annually by a certified public accountant (*Wirtschaftsprüfer*) who is appointed by our Supervisory Board with the consent of the Banking Supervision Authorities. BaFin and Deutsche Bundesbank must be informed of and may reject this appointment. Under the KWG, a bank's public accountant is required to inform BaFin and Deutsche Bundesbank of any facts coming to his or her attention which give reason to deny or qualify the certification of Rentenbank's annual financial statements or materially adversely affect the financial position of Rentenbank, as well as of any material breach by Rentenbank's management of the law or Rentenbank's Statutes.

The certified public accountant is required to prepare annually a detailed and comprehensive long-form audit report, which is submitted to our Management Board and Supervisory Board, BaFin and Deutsche Bundesbank.

**Reporting Requirements and Investigations**

BaFin may conduct audits, including on-site inspections, of banks on a random basis, as well as for cause. In particular, BaFin may audit our compliance with all relevant requirements for banking supervision, i.e. requirements from KWG, CRR, business conduct in the securities markets and the regulation of anti-money laundering and terrorist financing. In addition, BaFin may attend meetings of Rentenbank's Supervisory Board and may require such meetings to be convened.

Banks have to enable BaFin to monitor their compliance with banking regulation via regular reportings. BaFin obtains among others information about the financial condition of German banks from the annually audited financial statements as well as the monthly balance sheet. Furthermore, all regulatory reportings according to KWG and CRR are submitted by banks to BaFin and/or Deutsche Bundesbank.

Besides these regular reportings to the national supervisors, BaFin may require further information and documents from a bank as needed.

**BaFin Supervisory and Enforcement Power**

In the event that BaFin discovers irregularities, it has a wide range of enforcement powers. BaFin may, for example, impose additional own funds or liquidity requirements in excess of statutory requirements, restrict or limit a bank's business, require the cessation of activities to reduce risk, require a bank to use net profits to strengthen its own funds, remove the members of the bank's management or supervisory board from office or prohibit them from exercising their current managerial capacities.

In particular, if a bank is in danger of defaulting on its obligations to creditors, BaFin may take emergency measures to avert default. These measures may range from the issuance of instructions to the management of such bank to the revocation of the respective bank's license and closing of the respective bank, the prohibition of payments and disposals of assets, the suspension of customer services and the suspension of acceptance of payments other than in payment of debt owed to such bank.

BaFin may also impose administrative pecuniary penalties under the KWG and other German laws. Penalties under the KWG may generally be up to €5 million. If the economic benefit derived from the offense is higher, BaFin may impose penalties of up to 10% of the net turnover of the preceding business year or double the amount of the economic benefit derived from the violation.

Furthermore, violations of the KWG may result in criminal and administrative penalties.

**Regulatory changes in the banking sector on EU level**

Because of the elaborations of the Basel Committee on Banking Supervision ("BCBS") regarding the finalization of the Basel III post-crisis reforms, colloquially known as Basel IV, there were further regulatory changes in the EU banking sector. The remaining changes in regulation were implemented in the EU by the CRR III. The final legislation for the European implementation to finalize the Basel rules was published in June 2024. It is applicable since January 1, 2025, while parts of CRR III have already become effective in 2024. Among other topics there are material changes to the standardized approach for credit risk (SA), the calculation of credit valuation adjustments ("CVA") and the capital requirements for operational risks. Rentenbank has implemented all relevant requirements.

FINANCIAL SECTION

**FINANCIAL STATEMENTS AND AUDITORS**

The financial statements of Rentenbank included in Exhibit (e) to this annual report have been prepared in accordance with the German Commercial Code (HGB) and the more specific requirements of the Regulation on the Accounting of Credit Institutions and Financial Services Institutions (*Verordnung über die Rechnungslegung der Kreditinstitute, Finanzdienstleistungsinstitute und Wertpapierinstitute* (*Kreditinstituts-Rechnungslegungsverordnung;* "RechtKredV"), as well as various additional practices, laws and regulations of the Federal Republic of Germany (collectively "German GAAP"). German GAAP emphasizes the principle of prudence (*Vorsichtsprinzip*) in the presentation of the financial statements to protect the interests of creditors.

Pursuant to Section 9 of Rentenbank's Statutes, the annual financial statements of Rentenbank included in Exhibit (e) to this annual report are to be examined by a *Wirtschaftsprüfer* (certified public accountant) who is appointed by the Supervisory Board with the consent of the Supervising Authority. The public accountant's long-form audit report (*Prüfungsbericht*) serves as the basis for the audit of the General Accounting Office (*Bundesrechnungshof*).

Rentenbank's external auditors are Deloitte GmbH Wirtschaftsprüfungsgesellschaft, (Frankfurt am Main office) (hereinafter referred to as "Deloitte").

The annual audit of the financial statements included in Exhibit (e) to this annual report is conducted in accordance with German Generally Accepted Auditing Standards and in accordance with the EU Audit Regulation No. 537/2014. In the case of an institution directly under the federal government's supervision, such as Rentenbank, the scope of the audit is extended to meet the requirements of the Budgeting and Accounting Act (*Haushaltsgrundsätzegesetz*). Such Act requires that the audit and the resulting report be designed in such a way that enables the Supervisory Board, the Supervising Authority, and the General Accounting Office to form their own opinion and take action as and when required. One of the specific aspects to be covered by the extended audit and the audit report is the proper conduct of Rentenbank's business by its management.

In accordance with § 340(h) of the German Commercial Code (HGB), foreign currency amounts were converted and valued on the balance sheet date. Where foreign currency was set up to hedge interest and interest currency swap transactions, they are valued as a single unit.

The financial statements included in Exhibit (e) to this annual report were drawn up uniformly in accordance with the accounting and valuation methods authorized for Rentenbank.

The audit report of Deloitte for the year ended December 31, 2025, dated March 2, 2026, refers to a management report (*Lagebericht*) included in Exhibit (e) to this annual report. The examination of, and the audit report upon, this management report is required under German Generally Accepted Accounting Standards ("German GAAS"). This examination was not made in accordance with U.S. Generally Accepted Auditing Standards ("U.S. GAAS"), U.S. attestation standards or standards issued by the Public Company Accounting Oversight Board ("PCAOB Standards"). Therefore, Deloitte does not provide any opinion on the aforementioned examination or on the financial statements included in Exhibit (e) to this annual report in accordance with U.S. GAAS, U.S. attestation standards or PCAOB Standards.

A reprint of the auditor's report can be found starting on page 92 of Exhibit (e) to this annual report.

**SUMMARY OF MATERIAL DIFFERENCES<br> BETWEEN GERMAN GAAP AND U.S. GAAP**

The financial statements of Rentenbank included in Exhibit (e) to this annual report have been prepared in accordance with German GAAP. As a result, Rentenbank's financial statements included in Exhibit (e) to this annual report may differ substantially from financial statements prepared in accordance with accounting principles generally accepted and financial reporting practices followed in the United States ("U.S. GAAP"). Rentenbank is not required to prepare or present financial statements in accordance with accounting and reporting practices and principles followed in the United States.

The following is a summary of material differences between German GAAP and U.S. GAAP as of the dates of Rentenbank's financial statements included in Exhibit (e) to this annual report. It should not be taken as an exhaustive list of all differences. No attempt has been made to identify all disclosure, presentation or classification differences that would affect the manner in which transactions or events are presented in the financial statements of Rentenbank, or notes thereto (both included in Exhibit (e) to this annual report.

**Investment Securities**

Under German GAAP, securities are classified as securities in the trading portfolio, "liquidity reserve" securities or fixed assets. Fixed assets are valued based on the "modified lower of cost or market principle" according to which the historic cost (the original purchase price) is subject to exceptional depreciation only if a permanent impairment in value is expected. Liquidity reserve securities are current assets and recorded at the lower of cost or market. Trading portfolio securities are recorded at fair value under consideration of a deduction to account for risk. All recognized changes in valuation are recorded in current income or expense, as applicable.

Under U.S. GAAP, investments in debt securities are classified into the categories trading, available for sale or held to maturity. According to Accounting Standards Codification ("ASC") 320 "Investments – Debt and Equity Securities", securities held to maturity are carried at amortized cost and are subject to other-than-temporary impairment tests. Trading and available-for-sale securities are recorded at fair value. Adjustments to the fair value of available-for-sale securities are included in other comprehensive income, a separate component of equity, while adjustments to the fair value of trading securities are recognized in profit or loss.

**Derivative Instruments and Hedge Accounting**

Under German GAAP, derivative instruments and embedded derivatives may be included in a financial institution's trading book or investment book. Trading derivatives are treated as current assets or liabilities and recorded at fair value under consideration of a deduction to account for risk. Hedge accounting is permitted as micro-hedge, portfolio-hedge or macro-hedge. Derivative financial instruments used for hedging purposes are generally accounted for as off-balance-sheet transactions and, in the case of Rentenbank, are disclosed in the notes to the financial statements included in Exhibit (e) to this annual report. Unrealized gains and losses of both the derivative financial instrument and hedged items are generally not recorded on the balance sheet or in the income statement. The related income and expense of a derivative financial instrument, such as interest income related to interest rate swaps, is reported on a basis consistent with the underlying hedged item *pro rata temporis*.

Under U.S. GAAP pursuant to ASC 815, Derivatives and Hedging, derivative instruments and embedded derivatives are recorded on the balance sheet at fair value as either assets or liabilities. Subject to certain specific qualifying conditions in ASC 815, a derivative instrument may be designated either as a hedge of changes in the fair value of a recognized asset or liability, an unrecognized firm commitment, or an identified portion of such an asset, liability or firm commitment (fair value hedge), or as a hedge of the exposure to variability in cash flows of a recognized asset or liability or a probable forecast transaction (cash flow hedge). A derivative instrument qualifying as a fair value hedge is measured at fair value with changes in fair value recognized in profit or loss. The hedged item is remeasured to fair value in respect of the hedged risk. For a derivative instrument qualifying as a cash flow hedge, fair value gains or losses associated with the risk being hedged are recorded in other comprehensive income and reclassified to profit or loss when the hedged item affects profit or loss.

**Provision for Loan Losses**

German GAAP requires that, in establishing and maintaining the allowance for loan losses, entities consider all evident risks relating to their lending operations, primarily counterparty credit risk. Specific provisions account for anticipated losses reduced by the expected net realizable value of any collateral provided. Additionally, Rentenbank maintains a general reserve based on expected losses.

Under U.S. GAAP, guidance relating to the impairment of loans is included in ASC 326 Measurement of Credit Losses on Financial Instruments. The CECL (Current Expected Credit Loss) model applies to financial assets measured at amortized cost and certain off-balance sheet credit exposures. For instruments in the scope of the general CECL model, lifetime expected credit losses are recorded upon initial recognition of the instrument as an allowance for loan losses. The allowance for loan losses is a valuation account deducted from the amortized cost of the financial assets to present the net amount expected to be collected. Each reporting period, changes in the estimate of expected credit losses are generally recognized through earnings as a credit expense or a reversal of credit expense. When estimating CECL, reporting entities are required to calculate expected credit losses on a "pooled" basis when instruments have similar risk characteristics.

**Certain Provisions and Reserves**

German GAAP permits provisions for general banking risks by setting up certain "hidden" reserves. In accordance with Section 340(f) of the German Commercial Code banks can set up reserves based on the valuation of loans and advances to banks and customers as well as securities held as part of the liquidity reserve by recording these assets at a lower amount than generally required. Hidden reserves are restricted to 4% of the value of the assets. Income and expenditure relating to movements in the hidden reserves may be netted with the income or expenditure relating to lending operations and securities held as part of the liquidity reserve. In addition, in accordance with Section 340(g) of the German Commercial Code, a general provision for general risks related to the specific business model is also permitted and disclosed on the face of the balance sheet.

Under U.S. GAAP, loan loss provisions are only recorded when certain criteria are met. In accordance with ASC 450 "Contingencies" a provision is only recognized when (a) information available prior to issuance of the financial statements indicates that it is probable that an asset has been impaired at the date of the financial statements and (b) the amount of the loss can be reasonably estimated.

**Reacquired Own Debt Securities**

Under German GAAP, own debt securities that are reacquired with the intention of resale are recorded as assets at acquisition cost, and subsequently valued at the lower of cost or market. Gains or losses on resale of such securities are recorded in the profit and loss account.

Under U.S. GAAP, repurchased own debt securities result in a reduction of outstanding liabilities on the balance sheet, irrespective of whether the securities are intended for resale or not. The difference between the cost of re-acquisition and the carrying amount of outstanding debt is recorded in current income.

**Property and Equipment**

Under German GAAP, property and equipment is reported at acquisition or manufacturing cost, as applicable, and depreciated over its estimated economic useful life. In practice, depreciation is carried out on the basis of the depreciation tables issued by the tax authorities. Based on the modified lower of cost or market principle, any expected permanent impairment of property and equipment results in additional depreciation. Additional depreciation is reversed when the reason for the impairment no longer exists.

U.S. GAAP requires that property and equipment be carried at cost less scheduled depreciation in accordance with the estimated economic useful life of the asset. U.S. GAAP requires that assets be reviewed for impairment. Therefore, the carrying amount of the asset is compared with the sum of the undiscounted cash flows. If the carrying amount of the asset exceeds the sum of the undiscounted cash flows, the carrying amount of the asset is compared to the fair value and an impairment loss is recognized to the extent fair value exceeds the carrying amount of the asset. U.S. GAAP does not permit a reversal of impairment losses.

**Pension Provisions**

Under German GAAP, Pension provisions are measured based on generally accepted actuarial principles, using the projected unit credit (PUC) method. The provision amount determined under the PUC method is defined as the actuarial present value of the pension obligations which has been earned by the employees as of the relevant date due to their periods of service in the past, based on the pension benefit formula and the vesting provisions. These provisions are discounted pursuant to Section 253 paragraph 2 of the German Commercial Code and the related decree on the Discounting of Provisions (*Rückstellungsabzinsungsverordnung*). Since 2016, the discount rates used for pension obligations are the average market interest rates for the past ten fiscal years; until 2015 the average market interest rates for the past seven fiscal years were used.

Under U.S. GAAP, a pension asset or liability representing the excess or deficit of plan assets over benefit obligations is recognized in the balance sheet for defined benefit plans. The pension benefit obligation is generally calculated using the projected unit credit method, including assumptions for future salary increases.

**Trust Assets / Trust Liabilities**

Under German GAAP, assets and equal liabilities held in trust are recorded on the balance sheet. Under U.S. GAAP, these items would generally not be recorded on the balance sheet.

**SUPPLEMENTARY INFORMATION ON FUNDED DEBT<sup>(1)</sup>**

The following table sets forth information concerning Rentenbank's outstanding bonds and notes as of December 31, 2025, with an initial maturity of more than one year and issued in the capital markets.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Currency/ISIN** | &nbsp;&nbsp;**Coupon Type/<br> Number of<br> Issues** | &nbsp;&nbsp;&nbsp;&nbsp;**Interest Rate<br> per annum in %** | &nbsp;&nbsp;**Year of <br> Maturity** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in Currency** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in EUR (2)** |
| &nbsp;&nbsp;**<u>AUD - Australian Dollar</u>** |  |  |  |  |  |
| &nbsp;&nbsp;AU3CB0220598 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.750 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;880000000.00 | &nbsp;&nbsp;500540356.06 |
| &nbsp;&nbsp;AU3CB0239796 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.600 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;925000000.00 | &nbsp;&nbsp;526136169.72 |
| &nbsp;&nbsp;AU3CB0246999 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.250 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1505000000.00 | &nbsp;&nbsp;856037768.04 |
| &nbsp;&nbsp;AU3CB0247062 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.400 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;100000000.00 | &nbsp;&nbsp;56879585.91 |
| &nbsp;&nbsp;AU3CB0254001 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.200 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;850000000.00 | &nbsp;&nbsp;483476480.29 |
| &nbsp;&nbsp;AU3CB0265411 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.900 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;300000000.00 | &nbsp;&nbsp;170638757.74 |
| &nbsp;&nbsp;AU3CB0288108 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.300 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;125000000.00 | &nbsp;&nbsp;71099482.39 |
| &nbsp;&nbsp;AU3CB0295822 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.000 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;450000000.00 | &nbsp;&nbsp;255958136.62 |
| &nbsp;&nbsp;AU3CB0306660 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.300 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;650000000.00 | &nbsp;&nbsp;369717308.45 |
| &nbsp;&nbsp;AU3CB0314102 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.500 | &nbsp;&nbsp;2034 | &nbsp;&nbsp;250000000.00 | &nbsp;&nbsp;142198964.79 |
| &nbsp;&nbsp;AU3CB0319390 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.250 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;1025000000.00 | &nbsp;&nbsp;583015755.64 |
| &nbsp;&nbsp;**Australian Dollar Total** |  | &nbsp;&nbsp;11 |  | &nbsp;&nbsp;7060000000.00 | &nbsp;&nbsp;4015698765.65 |
| &nbsp;&nbsp;**<u>CHF - Swiss Franc</u>** |  |  |  |  |  |
| &nbsp;&nbsp;CH1405472163 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.463 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;150000000.00 | &nbsp;&nbsp;161047884.90 |
| &nbsp;&nbsp;CH1423948533 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.595 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;150000000.00 | &nbsp;&nbsp;161047884.90 |
| &nbsp;&nbsp;CH1484611442 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.683 | &nbsp;&nbsp;2035 | &nbsp;&nbsp;310000000.00 | &nbsp;&nbsp;332832295.46 |
| &nbsp;&nbsp;**Swiss Franc Total** |  | &nbsp;&nbsp;3 |  | &nbsp;&nbsp;610000000.00 | &nbsp;&nbsp;654928065.26 |
| &nbsp;&nbsp;**<u>EUR - Euro</u>** |  |  |  |  |  |
| &nbsp;&nbsp;DE0002942448 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2049 | &nbsp;&nbsp;460000.00 | &nbsp;&nbsp;460000.00 |
| &nbsp;&nbsp;XF0029115338 | &nbsp;&nbsp;floating | &nbsp;&nbsp;2.050 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;19290123.46 | &nbsp;&nbsp;19290123.46 |
| &nbsp;&nbsp;XF0029212804 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.376 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;30000000.00 | &nbsp;&nbsp;30000000.00 |
| &nbsp;&nbsp;XF0029600040 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.505 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XF0029600065 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.490 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XF0029600115 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.470 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;40000000.00 | &nbsp;&nbsp;40000000.00 |
| &nbsp;&nbsp;XF0029600149 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.410 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;43000000.00 | &nbsp;&nbsp;43000000.00 |
| &nbsp;&nbsp;XF0029600248 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.910 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XF0029600370 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.000 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;65000000.00 | &nbsp;&nbsp;65000000.00 |
| &nbsp;&nbsp;XF0029600461 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.320 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;5000000.00 | &nbsp;&nbsp;5000000.00 |
| &nbsp;&nbsp;XF0029600743 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;47774800.48 | &nbsp;&nbsp;47774800.48 |
| &nbsp;&nbsp;XF0029600818 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;81693092.79 | &nbsp;&nbsp;81693092.79 |
| &nbsp;&nbsp;XF0029600834 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.150 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;5000000.00 | &nbsp;&nbsp;5000000.00 |
| &nbsp;&nbsp;XF0029600875 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;44017659.48 | &nbsp;&nbsp;44017659.48 |
| &nbsp;&nbsp;XF0029600917 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2041 | &nbsp;&nbsp;75771322.69 | &nbsp;&nbsp;75771322.69 |
| &nbsp;&nbsp;XF0029600925 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.910 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XF0029601022 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.050 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XF0029601030 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.200 | &nbsp;&nbsp;2035 | &nbsp;&nbsp;48000000.00 | &nbsp;&nbsp;48000000.00 |
| &nbsp;&nbsp;XF0029601048 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2035 | &nbsp;&nbsp;42000000.00 | &nbsp;&nbsp;42000000.00 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Currency/ISIN** | &nbsp;&nbsp;**Coupon Type/<br> Number of<br> Issues** | &nbsp;&nbsp;**Interest Rate<br> per annum in %** | &nbsp;&nbsp;**Year of <br> Maturity** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in Currency** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in EUR (2)** |
| &nbsp;&nbsp;XF0029601071 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;49000000.00 | &nbsp;&nbsp;49000000.00 |
| &nbsp;&nbsp;XF0029601097 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;49000000.00 | &nbsp;&nbsp;49000000.00 |
| &nbsp;&nbsp;XF0029601105 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XF0029601113 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XF0029601121 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XF0029601139 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XF0029601147 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.310 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;15000000.00 | &nbsp;&nbsp;15000000.00 |
| &nbsp;&nbsp;XF0029601154 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2046 | &nbsp;&nbsp;44000000.00 | &nbsp;&nbsp;44000000.00 |
| &nbsp;&nbsp;XF0029601162 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XF0029601170 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2046 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XF0029601188 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2046 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XF0029601204 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2047 | &nbsp;&nbsp;80000000.00 | &nbsp;&nbsp;80000000.00 |
| &nbsp;&nbsp;XF0029601212 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2047 | &nbsp;&nbsp;6000000.00 | &nbsp;&nbsp;6000000.00 |
| &nbsp;&nbsp;XF0029601220 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2047 | &nbsp;&nbsp;10000000.00 | &nbsp;&nbsp;10000000.00 |
| &nbsp;&nbsp;XF0029601238 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2051 | &nbsp;&nbsp;11000000.00 | &nbsp;&nbsp;11000000.00 |
| &nbsp;&nbsp;XF0029601246 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2049 | &nbsp;&nbsp;40000000.00 | &nbsp;&nbsp;40000000.00 |
| &nbsp;&nbsp;XF0029601253 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.820 | &nbsp;&nbsp;2042 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XF0029601261 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.500 | &nbsp;&nbsp;2043 | &nbsp;&nbsp;15000000.00 | &nbsp;&nbsp;15000000.00 |
| &nbsp;&nbsp;XF0029601279 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.850 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;30000000.00 | &nbsp;&nbsp;30000000.00 |
| &nbsp;&nbsp;XF0029601287 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.915 | &nbsp;&nbsp;2039 | &nbsp;&nbsp;30000000.00 | &nbsp;&nbsp;30000000.00 |
| &nbsp;&nbsp;XS1192872866 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.625 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;2110000000.00 | &nbsp;&nbsp;2110000000.00 |
| &nbsp;&nbsp;XS1290114757 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2035 | &nbsp;&nbsp;34800000.00 | &nbsp;&nbsp;34800000.00 |
| &nbsp;&nbsp;XS1379610675 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.375 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS1386405150 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.300 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XS1511781897 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.625 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;1850000000.00 | &nbsp;&nbsp;1850000000.00 |
| &nbsp;&nbsp;XS1573223622 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2047 | &nbsp;&nbsp;106000000.00 | &nbsp;&nbsp;106000000.00 |
| &nbsp;&nbsp;XS1615677280 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.625 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;2200000000.00 | &nbsp;&nbsp;2200000000.00 |
| &nbsp;&nbsp;XS1701861848 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2047 | &nbsp;&nbsp;17500000.00 | &nbsp;&nbsp;17500000.00 |
| &nbsp;&nbsp;XS1918006641 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.710 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;10000000.00 | &nbsp;&nbsp;10000000.00 |
| &nbsp;&nbsp;XS1935141033 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.150 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;10000000.00 | &nbsp;&nbsp;10000000.00 |
| &nbsp;&nbsp;XS1951092144 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.375 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS1957349332 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.500 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS2021173922 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.050 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS2084429963 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS2233120554 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;2000000000.00 | &nbsp;&nbsp;2000000000.00 |
| &nbsp;&nbsp;XS2263517364 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.010 | &nbsp;&nbsp;2040 | &nbsp;&nbsp;575000000.00 | &nbsp;&nbsp;575000000.00 |
| &nbsp;&nbsp;XS2288920502 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1650000000.00 | &nbsp;&nbsp;1650000000.00 |
| &nbsp;&nbsp;XS2320764702 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2051 | &nbsp;&nbsp;30000000.00 | &nbsp;&nbsp;30000000.00 |
| &nbsp;&nbsp;XS2334867871 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2051 | &nbsp;&nbsp;40000000.00 | &nbsp;&nbsp;40000000.00 |
| &nbsp;&nbsp;XS2359292955 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;1000000000.00 |
| &nbsp;&nbsp;XS2367892093 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.400 | &nbsp;&nbsp;2036 | &nbsp;&nbsp;10000000.00 | &nbsp;&nbsp;10000000.00 |
| &nbsp;&nbsp;XS2386139732 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS2390861362 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1500000000.00 |
| &nbsp;&nbsp;XS2392952235 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.210 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;12000000.00 | &nbsp;&nbsp;12000000.00 |
| &nbsp;&nbsp;XS2405489092 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.050 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;1700000000.00 | &nbsp;&nbsp;1700000000.00 |
| &nbsp;&nbsp;XS2440790082 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.984 | &nbsp;&nbsp;2042 | &nbsp;&nbsp;125000000.00 | &nbsp;&nbsp;125000000.00 |
| &nbsp;&nbsp;XS2447757308 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.910 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XS2451817014 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.365 | &nbsp;&nbsp;2042 | &nbsp;&nbsp;120000000.00 | &nbsp;&nbsp;120000000.00 |
| &nbsp;&nbsp;XS2453958766 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.100 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;2000000000.00 | &nbsp;&nbsp;2000000000.00 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Currency/ISIN** | &nbsp;&nbsp;**Coupon Type/<br> Number of<br> Issues** | &nbsp;&nbsp;**Interest Rate per <br> annum in %** | &nbsp;&nbsp;**Year of <br> Maturity** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in Currency** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in EUR (2)** |
| &nbsp;&nbsp;XS2500341990 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.900 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;1000000000.00 |
| &nbsp;&nbsp;XS2502386142 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.792 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;100000000.00 | &nbsp;&nbsp;100000000.00 |
| &nbsp;&nbsp;XS2555166128 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.000 | &nbsp;&nbsp;2034 | &nbsp;&nbsp;1300000000.00 | &nbsp;&nbsp;1300000000.00 |
| &nbsp;&nbsp;XS2581363491 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.020 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XS2587748174 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.750 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;2100000000.00 | &nbsp;&nbsp;2100000000.00 |
| &nbsp;&nbsp;XS2595650222 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.250 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2500000000.00 |
| &nbsp;&nbsp;XS2598304512 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.500 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;40000000.00 | &nbsp;&nbsp;40000000.00 |
| &nbsp;&nbsp;XS2689476476 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.594 | &nbsp;&nbsp;2043 | &nbsp;&nbsp;25000000.00 | &nbsp;&nbsp;25000000.00 |
| &nbsp;&nbsp;XS2694863841 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.250 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;1000000000.00 |
| &nbsp;&nbsp;XS2702300836 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.676 | &nbsp;&nbsp;2043 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;1000000000.00 |
| &nbsp;&nbsp;XS2825501567 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.210 | &nbsp;&nbsp;2034 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XS2856144576 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.875 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;1300000000.00 | &nbsp;&nbsp;1300000000.00 |
| &nbsp;&nbsp;XS2977903314 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.750 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;1075000000.00 | &nbsp;&nbsp;1075000000.00 |
| &nbsp;&nbsp;XS2978804628 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.430 | &nbsp;&nbsp;2045 | &nbsp;&nbsp;20000000.00 | &nbsp;&nbsp;20000000.00 |
| &nbsp;&nbsp;XS2991301263 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.501 | &nbsp;&nbsp;2045 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;50000000.00 |
| &nbsp;&nbsp;XS2999573905 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.500 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;1450000000.00 | &nbsp;&nbsp;1450000000.00 |
| &nbsp;&nbsp;XS3112555258 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.625 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;1000000000.00 |
| &nbsp;&nbsp;XS3120114684 | &nbsp;&nbsp;floating | &nbsp;&nbsp;2.226 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;750000000.00 | &nbsp;&nbsp;750000000.00 |
| &nbsp;&nbsp;XS3242528944 | &nbsp;&nbsp;zero | &nbsp;&nbsp;0.000 | &nbsp;&nbsp;2055 | &nbsp;&nbsp;37000000.00 | &nbsp;&nbsp;37000000.00 |
| &nbsp;&nbsp;XS3246275708 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.690 | &nbsp;&nbsp;2055 | &nbsp;&nbsp;14000000.00 | &nbsp;&nbsp;14000000.00 |
| &nbsp;&nbsp;**Euro Total** |  | &nbsp;&nbsp;88 |  | &nbsp;&nbsp;48337306998.90 | &nbsp;&nbsp;48337306998.90 |
| &nbsp;&nbsp;**<u>GBP - British Pound Sterling</u>** |  |  |  |  |  |
| &nbsp;&nbsp;XS2035406987 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.875 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;850000000.00 | &nbsp;&nbsp;974100389.64 |
| &nbsp;&nbsp;XS2436454842 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.250 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;325000000.00 | &nbsp;&nbsp;372450148.98 |
| &nbsp;&nbsp;XS2474955924 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.125 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;250000000.00 | &nbsp;&nbsp;286500114.60 |
| &nbsp;&nbsp;XS2763640815 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.875 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;400000000.00 | &nbsp;&nbsp;458400183.36 |
| &nbsp;&nbsp;XS2972044163 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.375 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;700000000.00 | &nbsp;&nbsp;802200320.88 |
| &nbsp;&nbsp;**British Pound Sterling Total** |  | &nbsp;&nbsp;5 |  | &nbsp;&nbsp;2525000000.00 | &nbsp;&nbsp;2893651157.46 |
| &nbsp;&nbsp;**<u>JPY - Japanese Yen</u>** |  |  |  |  |  |
| &nbsp;&nbsp;XS0064185035 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;62.925 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;10000000000.00 | &nbsp;&nbsp;54321255.90 |
| &nbsp;&nbsp;**Japanese Yen Total** |  | &nbsp;&nbsp;1 |  | &nbsp;&nbsp;10000000000.00 | &nbsp;&nbsp;54321255.90 |
| &nbsp;&nbsp;**<u>MXN - Mexican Peso</u>** |  |  |  |  |  |
| &nbsp;&nbsp;XS1721762240 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;7.460 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;230000000.00 | &nbsp;&nbsp;10891182.87 |
| &nbsp;&nbsp;**Mexican Peso Total** |  | &nbsp;&nbsp;1 |  | &nbsp;&nbsp;230000000.00 | &nbsp;&nbsp;10891182.87 |
| &nbsp;&nbsp;**<u>NOK - Norwegian Krone</u>** |  |  |  |  |  |
| &nbsp;&nbsp;XS2320031383 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.250 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;84438064.67 |
| &nbsp;&nbsp;XS2433243271 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.876 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;2000000000.00 | &nbsp;&nbsp;168876129.35 |
| &nbsp;&nbsp;XS2978050883 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.260 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;3000000000.00 | &nbsp;&nbsp;253314194.03 |
| &nbsp;&nbsp;**Norwegian Krone Total** |  | &nbsp;&nbsp;3 |  | &nbsp;&nbsp;6000000000.00 | &nbsp;&nbsp;506628388.05 |
| &nbsp;&nbsp;**<u>NZD - New Zealand Dollar</u>** |  |  |  |  |  |
| &nbsp;&nbsp;NZLRBDT015C8 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.875 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;450000000.00 | &nbsp;&nbsp;220804710.50 |
| &nbsp;&nbsp;NZLRBDT016C6 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.875 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;300000000.00 | &nbsp;&nbsp;147203140.33 |
| &nbsp;&nbsp;XS1557161269 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.320 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;15000000.00 | &nbsp;&nbsp;7360157.01 |
| &nbsp;&nbsp;XS1839905608 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.619 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;40000000.00 | &nbsp;&nbsp;19627085.37 |
| &nbsp;&nbsp;**New Zealand Dollar Total** |  | &nbsp;&nbsp;4 |  | &nbsp;&nbsp;805000000.00 | &nbsp;&nbsp;394995093.21 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Currency/ISIN** | &nbsp;&nbsp;**Coupon Type/<br> Number of<br> Issues** | &nbsp;&nbsp;**Interest Rate per <br> annum in %** | &nbsp;&nbsp;**Year of <br> Maturity** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in Currency** | &nbsp;&nbsp;**Principal Amount Outstanding <br> in EUR (2)** |
| &nbsp;&nbsp;**<u>SEK - Swedish Krona</u>** |  |  |  |  |  |
| &nbsp;&nbsp;XS1690650392 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.463 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;3080000000.00 | &nbsp;&nbsp;284618583.37 |
| &nbsp;&nbsp;XS1739553755 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.215 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;150000000.00 | &nbsp;&nbsp;13861294.64 |
| &nbsp;&nbsp;XS1784133099 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.421 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;187000000.00 | &nbsp;&nbsp;17280413.99 |
| &nbsp;&nbsp;XS1811361978 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.235 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;150000000.00 | &nbsp;&nbsp;13861294.64 |
| &nbsp;&nbsp;XS1908251322 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.230 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;3650000000.00 | &nbsp;&nbsp;337291503.02 |
| &nbsp;&nbsp;XS1910862108 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.235 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1600000000.00 | &nbsp;&nbsp;147853809.54 |
| &nbsp;&nbsp;XS1981094102 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.625 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;2000000000.00 | &nbsp;&nbsp;184817261.93 |
| &nbsp;&nbsp;XS2238022060 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.195 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;92408630.96 |
| &nbsp;&nbsp;XS2386638220 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.504 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;138612946.44 |
| &nbsp;&nbsp;XS2992040225 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.750 | &nbsp;&nbsp;2032 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;92408630.96 |
| &nbsp;&nbsp;**Swedish Krona Total** |  | &nbsp;&nbsp;10 |  | &nbsp;&nbsp;14317000000.00 | &nbsp;&nbsp;1323014369.49 |
| &nbsp;&nbsp;**<u>USD - United States Dollar</u>** |  |  |  |  |  |
| &nbsp;&nbsp;US515110BR44 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.750 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1276595744.68 |
| &nbsp;&nbsp;US515110BT00 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.500 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;1250000000.00 | &nbsp;&nbsp;1063829787.23 |
| &nbsp;&nbsp;US515110BY94 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.875 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1276595744.68 |
| &nbsp;&nbsp;US515110CA00 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;0.875 | &nbsp;&nbsp;2026 | &nbsp;&nbsp;1750000000.00 | &nbsp;&nbsp;1489361702.12 |
| &nbsp;&nbsp;US515110CC65 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.875 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;1250000000.00 | &nbsp;&nbsp;1063829787.23 |
| &nbsp;&nbsp;US515110CD49 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.875 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1250000000.00 | &nbsp;&nbsp;1063829787.23 |
| &nbsp;&nbsp;US515110CE22 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;5.000 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;1000000000.00 | &nbsp;&nbsp;851063829.78 |
| &nbsp;&nbsp;US515110CF96 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.625 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1276595744.68 |
| &nbsp;&nbsp;US515110CG79 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.125 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1276595744.68 |
| &nbsp;&nbsp;US515110CH52 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.625 | &nbsp;&nbsp;2030 | &nbsp;&nbsp;1500000000.00 | &nbsp;&nbsp;1276595744.68 |
| &nbsp;&nbsp;XF0029601196 | &nbsp;&nbsp;floating | &nbsp;&nbsp;0.848 | &nbsp;&nbsp;2037 | &nbsp;&nbsp;30000000.00 | &nbsp;&nbsp;25531914.86 |
| &nbsp;&nbsp;XS1691887852 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;2.435 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;50000000.00 | &nbsp;&nbsp;42553191.48 |
| &nbsp;&nbsp;XS2101346208 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.750 | &nbsp;&nbsp;2027 | &nbsp;&nbsp;2500000000.00 | &nbsp;&nbsp;2127659574.46 |
| &nbsp;&nbsp;XS2307309893 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;1.000 | &nbsp;&nbsp;2028 | &nbsp;&nbsp;1450000000.00 | &nbsp;&nbsp;1234042553.19 |
| &nbsp;&nbsp;XS2481608029 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.000 | &nbsp;&nbsp;2029 | &nbsp;&nbsp;1150000000.00 | &nbsp;&nbsp;978723404.25 |
| &nbsp;&nbsp;XS2760775549 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;4.125 | &nbsp;&nbsp;2031 | &nbsp;&nbsp;1550000000.00 | &nbsp;&nbsp;1319148936.17 |
| &nbsp;&nbsp;XS3242507351 | &nbsp;&nbsp;fixed | &nbsp;&nbsp;3.981 | &nbsp;&nbsp;2033 | &nbsp;&nbsp;100000000.00 | &nbsp;&nbsp;85106382.97 |
| &nbsp;&nbsp;**United States Dollar Total** |  | &nbsp;&nbsp;17 |  | &nbsp;&nbsp;20830000000.00 | &nbsp;&nbsp;17727659574.37 |

---

(1) Interest rate of floating rate note means the applicable
 interest rate as of December 31, 2025.

(2) Conversion into euro at the spot rate using the European
 Central Bank reference rates on December 31, 2025.

**THE FEDERAL REPUBLIC OF GERMANY**

The following information regarding the Federal Republic is derived from the public official documents cited below. Certain information is preliminary.

**GENERAL**

**Area, Location and Population**

![](tm2612034d1_18kimg001.jpg)

The Federal Republic is situated in central Europe and comprises an area of approximately 358,000 square kilometers (about 138,000 square miles). According to a first estimate of the Federal Statistical Office, approximately 83.5 million people were living in Germany at the end of 2025, which represents a slight decrease of approximately 100,000 people compared to the end of 2024. These population figures are extrapolated from figures from the 2022 census, published on June 25, 2024. As a result of the 2022 census, the population figure as of May 15, 2022, was revised downward by approximately 1.3 million, from 84.0 million (based on the 2011 census) to 82.7 million inhabitants. Net immigration (defined as immigration minus emigration) was again positive in 2025, but was of insufficient magnitude to prevent the population from shrinking for the first time since 2020. According to the first estimate, in 2025 between 220,000 and 260,000 more people came to Germany than left the country. Thus, net immigration fell by at least 40% in 2025 compared to 2024 (430,183 people) and was at a level similar to that of 2020. In contrast, as in all years since German reunification in 1990, more people died than were born in 2025, which had a dampening effect on population growth. In 2025, the number of births fell again compared to 2024 and is expected to be between 640,000 and 660,000 (2024: 677,117), whereas the number of deaths remained stable at around 1.00 million (2024: 1.01 million), resulting in a birth deficit (difference between births and deaths) of between 340,000 and 360,000. At the end of 2024, approximately 17.4% of the total population was concentrated in metropolitan areas with more than 500,000 inhabitants; the largest of these areas were (in descending order) Berlin, Hamburg, Munich, Cologne and Frankfurt am Main.

*Sources: Statistisches Bundesamt, Bundesländer mit Hauptstädten nach Fläche, Bevölkerung und Bevölkerungsdichte am 31.12.2024 (23.09.2025) (https://www.destatis.de/DE/Themen/Laender-Regionen/Regionales/Gemeindeverzeichnis/Administrativ/02-bundeslaender.html); Statistisches Bundesamt, Bevölkerung Deutschlands nimmt im Jahr 2025 um rund 100 000 Personen ab, press release of January 29, 2026 (https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_032_124.html); Zensus 2022, Zensus 2022: 82,7 Millionen Einwohnerinnen und Einwohner, press release of June 25, 2024 (https://www.zensus2022.de/DE/Aktuelles/PM_Zensus_2022_Bevoelkerungszahl_Ergebnisveroeffentlichung.html); Statistisches Bundesamt, Städte (Alle Gemeinden mit Stadtrecht) nach Fläche, Bevölkerung und Bevölkerungsdichte am 31.12.2024 (23.09.2025) (https://www.destatis.de/DE/Themen/Laender-Regionen/Regionales/Gemeindeverzeichnis/Administrativ/05-staedte.html).*

The following table shows selected key demographic figures for the Federal Republic for the years stated.

Population (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2024 | 2023 | 2022 | 2021 | 2020 |
|  | (number of persons) | (number of persons) | (number of persons) | (number of persons) | (number of persons) |
| Total population | 83577140 | 83456045 | 83118501 | 83237124 | 83155031 |
| Age distribution | (percent of total population) | (percent of total population) | (percent of total population) | (percent of total population) | (percent of total population) |
| &nbsp;&nbsp;&nbsp;Under 20 | 18.6 | 18.8 | 18.8 | 18.5 | 18.4 |
| &nbsp;&nbsp;&nbsp;20-40 | 24.2 | 24.5 | 24.5 | 24.4 | 24.5 |
| &nbsp;&nbsp;&nbsp;40-60 | 26.6 | 26.8 | 27.3 | 27.7 | 28.1 |
| &nbsp;&nbsp;&nbsp;60-80 | 23.2 | 22.6 | 22.2 | 22.0 | 21.8 |
| &nbsp;&nbsp;&nbsp;80 and more | 7.2 | 7.2 | 7.2 | 7.3 | 7.1 |

---

(1) Based on census 2011.

*Source: Statistisches Bundesamt, Bevölkerung, Bevölkerungsstand, Bevölkerung nach Altersgruppen (ab 2011) (https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Bevoelkerung/Bevoelkerungsstand/Tabellen/liste-altersgruppen-basis-2022.html).*

Without the surplus resulting from net immigration, the total population would have decreased every year since German reunification in 1990 because more people died than were born in each year. These developments are expected to continue, together with the continued aging of the population. According to the 16th coordinated population projection of the Federal Statistical Office published in December 2025 and covering the period until 2070, the share of people of retirement age (which will be 67 years from 2031 onwards) will rise to one quarter by the year 2035. The number of people of working age (20 to 66 years), which currently comprises 51.2 million people, will decrease to between 45.4 and 48.0 million until 2040 years, which may result in a downward pressure on Germany's growth potential in the long term. The number of those aged 80 or over will remain relatively stable until the early 2030s, amounting to around 6.0 million. Subsequently, this elderly population is expected to increase strongly, along with the related need for long-term care. If net immigration remains at the average of the period from 1990 to 2031 (350,000 persons per year), around 81 million people would live in Germany in 2070. However, with a low level of net immigration of 150,000 people per year, which was the average of the years from 1955 to 1989, the population would decrease to just below 69 million people in 2070.

*Sources: Statistisches Bundesamt, Bevölkerung Deutschlands nimmt im Jahr 2025 um rund 100 000 Personen ab, press release of January 29, 2026 (https://www.destatis.de/DE/Presse/Pressemitteilungen/2026/01/PD26_032_124.html); Federal Statistical Office, By 2035, one quarter of Germany's population will be aged over 67 or over, press release of December 11, 2025 (https://www.destatis.de/EN/Press/2025/12/PE25_446_12.html); Bevölkerungsvorausberechnung: 16. Koordinierte Bevölkerungsvorausberechnung, Annahmen und Ergebnisse (in German only, https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Bevoelkerung/Bevoelkerungsvorausberechnung/annahmen_ergebnisse_16te_kBv.html).*

**Government**

The Federal Republic is a federated republic whose constitution is codified in the *Grundgesetz* of 1949. The capital of the Federal Republic is Berlin. The Federal Republic consists of 16 federal states (Länder). The Länder have legislative sovereignty over matters not expressly reserved to the legislative, executive and judicial bodies of the Federal Republic.

The *Grundgesetz* provides for a Federal President (*Bundespräsident*), two Houses of Parliament (the Bundestag and the Bundesrat, the latter consisting of representatives of the 16 Länder governments), a Chancellor (*Bundeskanzler*) and a Federal Constitutional Court (*Bundesverfassungsgericht*). The Chancellor heads the Federal Government (*Bundesregierung*), consisting of the Chancellor and the Federal Ministers. The *Bundespräsident* acts as head of state.

General elections for the Bundestag are generally held every four years on the basis of an electoral system of proportional representation. The most recent general election to the 21st Bundestag was held approximately seven months earlier than initially planned on February 23, 2025, following the termination of the previous governing coalition and the decision of the *Bundespräsident* to dissolve the 20th Bundestag at the proposal of the *Bundeskanzler* on December 27, 2024.

*Sources: The Federal Returning Officer, Bundestag Election 2025, Election to the 21st German Bundestag on 23 February 2025 (https://www.bundeswahlleiterin.de/en/info/presse/mitteilungen/bundestagswahl-2021/52_21_endgueltiges-ergebnis.html).*

A political party is not entitled to party representation in the Bundestag unless it receives at least 5% of the votes cast or three direct mandates, awarded to the candidate with the most votes in a given electoral district, in a general election. Upon proposal by the *Bundespräsident*, the Chancellor is elected by and is responsible to the Bundestag.

**Political Parties**

The political parties currently represented in the Bundestag are: the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU); the Alternative for Germany (AfD); the Social Democratic Party (SPD); the Greens (Bündnis 90/Die Grünen); the Left-Wing Party (Die Linke) and the Südschleswigscher Wählerverband (SSW), which participates in the distribution of seats of the Bundestag as a party representing the Danish minority in the Federal State of Schleswig-Holstein, to which the threshold of five percent of votes cast or three direct mandates for participation in the Bundestag does not apply.

Since 1949, the Federal Republic has been governed by ten Chancellors over 21 electoral periods. The most recent general election, held on February 23, 2025, resulted in a coalition between CDU/CSU and SPD. On May 6, 2025 the Bundestag elected Friedrich Merz (CDU) Chancellor for the first time.

*Sources: "Verantwortung für Deutschland" – Koalitionsvertrag zwischen CDU, CSU und SPD (https://www.spd.de/regierungsbildung); Deutscher Bundestag, Friedrich Merz mit 325 Stimmen zum Bundeskanzler gewählt (https://www.bundestag.de/dokumente/textarchiv/2025/kw19-de-kanzlerwahl-1062470)*

The following table shows the results of the five most recent general elections for the Bundestag.

Election Results to the German Bundestag

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2021 | 2021 | 2017 | 2017 | 2013 | 2013 | 2009 | 2009 |
|  | Elections | Elections | Elections | Elections | Elections | Elections | Elections | Elections | Elections | Elections |
|  | % of <br>Votes | Seats | % of <br>Votes | Seats | % of <br>Votes | Seats | % of <br>Votes | Seats | % of <br>Votes | Seats |
| CDU/CSU | 28.6 | 208 | 24.2 | 197 | 33.0 | 246 | 41.5 | 311 | 33.8 | 239 |
| AfD | 20.8 | 152 | 10.4 | 83 | 12.6 | 94 | 4.7 |  |  |  |
| SPD | 16.4 | 120 | 25.7 | 206 | 20.5 | 153 | 25.7 | 193 | 23.0 | 146 |
| Bündnis 90/Die Grünen | 11.6 | 85 | 14.7 | 118 | 8.9 | 67 | 8.4 | 63 | 10.7 | 68 |
| Die Linke | 8.8 | 64 | 4.9 | 39 | 9.2 | 69 | 8.6 | 64 | 11.9 | 76 |
| SSW<sup>(1)</sup> | 0.2 | 1 | 0.1 | 1 |  |  |  |  |  |  |
| FDP | 4.3 |  | 11.4 | 91 | 10.7 | 80 | 4.8 |  | 14.6 | 93 |
| Others | 9.4 |  | 8.6 |  | 5.0 |  | 6.2 |  | 6.0 |  |
| **Total** |  | **630** |  | **735** |  | **709** |  | **631** |  | **622** |

---

(1) SSW (*Südschleswigscher Wählerverband*), representing the Danish minority in the federal state of Schleswig-Holstein,
is exempt from the threshold of five percent of votes cast or three direct mandates for representation in the Bundestag.

*Sources: The Federal Returning Officer, Bundestag election 2025 (https://www.bundeswahlleiterin.de/en/bundestagswahlen/2025/ergebnisse/bund-99.html); The Federal Returning Officer, Bundestag Election 2021 (Repeat election in parts of Berlin on 11 February 2024), Results (https://www.bundeswahlleiterin.de/en/info/presse/mitteilungen/bundestagswahl-2021/52_21_endgueltiges-ergebnis.html);The Federal Returning Officer, Bundestag election 2017, Results (https://www.bundeswahlleiterin.de/bundestagswahlen/2017/ergebnisse/bund-99.html); The Federal Returning Officer, Bundestag election 2013, Results, Germany (http://www.bundeswahlleiterin.de/en/bundestagswahlen/2017/ergebnisse/bund-99.html); The Federal Returning Officer, Bundestag election 2009, Election to the 17th German Bundestag on 27 September 2009 (https://www.bundeswahlleiterin.de/en/bundestagswahlen/2009.html).*

**International Organizations**

In addition to the EU, the Federal Republic is a member of various major multilateral institutions, including the United Nations, the International Monetary Fund ("IMF"), the International Bank for Reconstruction and Development and the International Development Association, the Council of Europe, the Organization for Economic Cooperation and Development and the North Atlantic Treaty Organization ("NATO"). Furthermore, the Federal Republic is a signatory to the General Agreement on Tariffs and Trade and a member of the World Trade Organization ("WTO"). It is also a shareholder of, among others, the European Investment Bank ("EIB"), the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and the European Atomic Energy Community.

**The European Union and European Integration**

The Federal Republic was one of the six founding members of the European Coal and Steel Community in 1951, which later developed into the EU. Since its foundation, the EU has grown considerably. Following the withdrawal of the United Kingdom from the EU on January 31, 2020, 27 countries currently form part of the EU. These include Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, the Slovak Republic, Slovenia, Spain and Sweden (together, the "EU Member States").

According to provisional data, the aggregate population of the 27 EU Member States was approximately 450 million as of January 1, 2025. Active formal accession negotiations are currently being conducted with Montenegro, Serbia, Albania, North Macedonia, Ukraine, Moldova and Bosnia and Herzegovina.

While Türkiye is a key strategic partner of the EU on issues including migration, security, counter-terrorism, and trade, accession negotiations with Türkiye have not progressed in recent years. Kosovo applied for EU membership in December 2022 and remains a potential candidate. In December 2023 the European Council decided to open accession negotiations with the candidate country Ukraine. In addition, in 2023 Georgia was granted candidate status by the European Council, on the understanding that it will take relevant steps, as set out in the European Commission recommendation dated November 2023. In December 2024 the European Council suspended the EU accession process as the Georgian government showed insufficient political commitment. In March and June 2024 accession negotiations with the candidate countries Bosnia and Herzegovina and Moldova were started.

In November 2023, the European Commission adopted the Growth Plan for the Western Balkans to accelerate the accession process of the Western Balkans. In October 2024, the European Commission approved the Reform Agendas of Albania, Kosovo, Montenegro, North Macedonia and Serbia, which qualified these countries for the Growth Plan's benefits ahead of their full integration into the EU. Funds under the Reform and Growth Facility for the Western Balkans were disbursed to Albania, Moldova, Montenegro, North Macedonia in Fall 2025 and to Serbia in January 2026.

*Sources: European Union, Principles, countries, history, History of the EU (https://european-union.europa.eu/principles-countries-history/history-eu_en); European Union Principles, countries, history, History of the EU, History of the European Union 1945-59 (https://european-union.europa.eu/principles-countries-history/history-eu/1945-59_en); European Union, Principles, countries, history, EU countries (https://european-union.europa.eu/principles-countries-history/eu-countries_en#the-27-member-countries-of-the-eu); Statistical Office of the European Communities, Total population (https://ec.europa.eu/eurostat/databrowser/view/tps00001/default/table?lang=en);European Commission, Enlargement Policy (https://enlargement.ec.europa.eu/enlargement-policy_en), European Commission, Enlargement, Bosnia and Herzegovina (https://enlargement.ec.europa.eu/countries/bosnia-and-herzegovina_en); European Commission, Enlargement, Kosovo (https://enlargement.ec.europa.eu/enlargement-policy/kosovo_en), European Commission, Enlargement Policy, Growth Plan for the Western Balkans (https://enlargement.ec.europa.eu/enlargement-policy/growth-plan-western-balkans_en).*

***Political Integration***

The EU is based on treaties that are binding agreements between the EU Member States and have been approved voluntarily and democratically by all EU Member States. The treaties set out the EU's objectives, the rules governing the EU institutions, the way decisions are taken and the relationship between the EU and the EU Member States. Treaties are amended from time to time to make the EU more efficient and transparent, to prepare for the accession of candidate countries as new EU Member States and to introduce new areas of cooperation. Under the treaties currently in place, EU institutions can adopt legislation, which, depending on the subject matter, either becomes directly applicable law or requires further implementation by the EU Member States.

The EU's three main institutions are the Council of the EU (representing the governments of the EU Member States) (the "Council"), the Parliament (elected by and representing the citizens of the EU Member States) and the European Commission (the executive body of the EU). In addition, the European Council, which consists of the heads of state or government of the EU Member States, the European Council President and the President of the European Commission, defines the EU's overall political direction and priorities. It is not one of the EU's legislating institutions, but rather sets the EU's policy agenda, traditionally by adopting conclusions during European Council meetings which identify issues of concern and actions to take.

Article 50 of the Treaty on European Union provides for a mechanism for the voluntary and unilateral withdrawal of an EU Member State from the EU. Pursuant to Article 50, the withdrawal process is initiated by a notification from the EU Member State wishing to withdraw to the European Council. The EU treaties cease to apply to an EU Member State from the later of the date of entry into force of an agreement setting out arrangements for the EU Member State's withdrawal, or within two years of the notification of the withdrawal. The European Council may, in agreement with the EU Member State concerned, unanimously decide to extend the period beyond two years.

***EU Sanctions***. Restrictive measures, also known as sanctions, are an essential tool of the EU's Common Foreign and Security Policy. All restrictive measures adopted by the EU are fully compliant with its obligations under international law, including those pertaining to human rights and fundamental freedoms. The first step in adopting restrictive measures is through a proposal by the High Representative of the Union for Foreign Affairs and Security Policy. The Common Foreign and Security Policy Council resolves thereafter on any restrictive measures by way of a decision binding on EU Member States. Any restrictive measures which include economic or financial sanctions additionally require the adoption of an accompanying Council regulation. Regulations are directly applicable within the EU and are binding on individuals and entities, including economic operators. Decisions and regulations on sanctions must be adopted unanimously by the Council. The regulation defines the precise scope of the measures and details of their implementation. In April 2024, the Council gave final approval to introduce criminal offences and penalties for EU sanctions' violation. This policy change gained particular traction in the context of Russia's invasion of Ukraine.

As part of the EU response to Russia's invasion of Ukraine, the EU adopted a set of comprehensive restrictive measures against Russia and Russian individuals in addition to the prior sanctions that were imposed after the illegal annexation of Crimea in 2014. In addition, sanctions were issued against Belarus in response to their involvement in this invasion and against Iran in relation to the manufacturing and supply of drones as well as North Korea in response to its nuclear- and ballistic missile-related activities and its military support. The sanctions imposed comprise, among others, individual and economic sanctions. In March 2026, 1,985 Russian individuals, including Russian President Vladimir Putin and Russian Foreign Minister Sergey Lavrov, and 687 entities were subjected to an asset freeze and/or a travel ban because their actions undermined Ukraine's territorial integrity, sovereignty and independence. The lists of sanctioned persons and entities are kept under constant review and are subject to periodic renewals by the Council. The economic sanctions, which target exchanges with Russia and Belarus and Iran in specific economic sectors, include restricted access to EU capital markets for certain Russian banks and companies, a ban on transactions with the Russian Central Bank and the Central Bank of Belarus, a ban of a number of Russian and Belarusian banks from the SWIFT messaging network, a prohibition on the provision of euro-denominated banknotes to Russia and Belarus, a prohibition on the provision of crypto-wallets to Russia, a prohibition on the use the Russian 'system for Transfer of Financial Messages', a ban on coal and other solid-fossil-fuel imports from Russia, a dynamic price cap related to the maritime transport of crude oil, a ban on use of EU airspace and EU airports by Russian-owned, Russian-registered or Russian-controlled aircraft, a ban on exports to and imports from Russia of raw materials, goods and technology in various sectors, a ban on exports to Russia of dual-use goods, an export and import ban on arms and a prohibition on the provision of certain services to Russia or Russian persons, including the provision of software for the management of enterprises. The EU has introduced a ban on access to EU ports for vessels to prevent the circumvention of sanctions. In December 2025 the Council prohibited the transfers of immobilized Central Bank of Russia assets back to Russia and allowed for an unlimited asset freeze.

*Sources: European Commission, Europe in 12 lessons by Pascal Fontaine (https://op.europa.eu/en/publication-detail/-/publication/a5ba73c6-3c6a-11e8-b5fe-01aa75ed71a1); EUR-Lex, Treaties currently in force (https://eur-lex.europa.eu/collection/eu-law/treaties/treaties-force.html); European Council, Council of the European Union, The European Council (https://www.consilium.europa.eu/en/european-council/) EUR-Lex, Consolidated versions of the Treaty on European Union, Article 50 (https://eur-lex.europa.eu/eli/treaty/teu_2016/art_50/oj); European Council, Council of the European Union, Policies, Why the EU adopts sanctions, accessed on March 5, 2026 (https://www.consilium.europa.eu/en/policies/why-sanctions/); European Council, Council of the European Union, Policies, EU sanctions against Russia (https://www.consilium.europa.eu/en/policies/sanctions-against-russia/); European Council, Council of the European Union, Policies, Russia's war of aggression against Ukraine: Council sanctions 9 shadow fleet enablers (https://www.consilium.europa.eu/en/press/press-releases/2025/12/15/russia-s-war-of-aggression-against-ukraine-council-sanctions-9-shadow-fleet-enablers/); European Council, Council of the European Union, Policies, EU sanctions against Belarus (https://www.consilium.europa.eu/en/policies/sanctions-against-belarus/); European Council, Council of the European Union, Policies, EU sanctions against Iran (https://www.consilium.europa.eu/en/policies/sanctions-against-iran/); European Council, Council of the European Union, Policies, EU sanctions against North Korea (https://www.consilium.europa.eu/en/policies/sanctions-against-north-korea/); European Commission, EU adopts 18th package of sanctions against Russian (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1840); European Council, Council of the European Union, Council decides to prohibit transfers of immobilised Central Bank of Russia assets back to Russia (https://www.consilium.europa.eu/en/press/press-releases/2025/12/12/council-decides-to-prohibit-transfers-of-immobilised-central-bank-of-russia-assets-back-to-russia/)*

***Economic Integration***

From its inception, the EU has had the fundamental objective, in line with its predecessors, of economic integration of its member states. After a long process, a single market that provides for the free movement of goods and services, persons and capital among the EU Member States was established as of January 1, 1993. The integration of the EU Member States' economies and the completion of a single market are also promoted by a European competition policy, which aims at creating a level-playing field for EU Member States' companies, thereby promoting economic efficiency, and by a European consumer policy. In addition, various liberalization and harmonization measures are being implemented, for example in the telecommunication and energy sectors. In the financial sector, the single market has been fostered by providing for the free movement of capital and the freedom to perform banking services throughout the EU under the "single passport," which enables financial institutions to provide financial services throughout the EU based on a single license obtained in one EU Member State. The EU promotes economic integration with regional aid, which is designed to focus development efforts on certain disadvantaged regions and sections of population of the EU. Another important policy area for the EU has been agriculture and fisheries.

***State Aid***. EU Member States may generally only grant state aid to companies within the narrow framework of the EU's regulations and procedures on state aid in order to safeguard a level playing field within the single market. Nevertheless, state aid is permissible for Important Projects of Common European Interest ("IPCEI") if the European Commission approves that the positive effects of state aid outweigh its distortive effects. IPCEI are large-scale, cross-border projects that address a market failure or systemic challenge by fostering breakthrough innovation or strategic infrastructure with significant benefits for the entire European Union. In addition, to enable EU Member States to support their national economies in the development of clean energy, industrial decarbonization and clean technology, the European Commission adopted a new framework for state aid measures accompanying the Clean Industrial Deal ("Clean Industrial Deal State Aid Framework") in June 2025. This framework replaced the Temporary Crisis and Transition Framework that was adopted in the context of Russia's invasion of Ukraine. The Clean Industrial Deal State Aid Framework, with a maturity until the end of 2030, provides for several types of aid that may be granted by the EU Member States to accelerate decarbonization and enhance the competitiveness of the European Union. It allows for the provision of liquidity support in the form of state guarantees and subsidized loans, which help ensure that sufficient liquidity remains available to businesses. In particular, state aid may be granted to accelerate the roll-out of renewable energy, to support electricity costs for energy-intensive users and to decarbonize industrial production processes.

***The EU Budget and the EU Recovery Instrument***. The EU's expenditures are governed by a long-term budget, also referred to as multiannual financial framework ("MFF"). The MFF is meant to ensure that the EU's expenditures develop in an orderly manner and within the limits of its own resources. It aims to align spending with policy priorities, to increase predictability of EU finances for co-financers and beneficiaries, to ensure EU budgetary discipline and to facilitate the adoption of the annual EU budget. It sets overall spending limits by determining annual maximum amounts for commitment appropriations, which cover commitments made to spend funds over one or more years in certain expenditure categories and for payment appropriations.

The regulation laying down the MFF of the EU for the years 2021 to 2027 was formally adopted in December 2020. The long-term EU budget provides EUR 1,216 billion (in current prices) in commitment appropriations. The temporary extraordinary Next Generation EU recovery instrument (the "EU Recovery Instrument") amounts up to EUR 807 billion (in current prices), which is specifically aimed at addressing the socioeconomic consequences of the COVID-19 pandemic. Together with the EUR 64.6 billion to finance EU priorities following the 2024 revisions, this allows the EU to provide an unprecedented amount of approximately EUR 2.07 trillion to help repair the economic and social damage caused by the COVID-19 pandemic in Europe and support the transition towards a modern and more sustainable Europe, including the green and digital transitions. In September 2025 the Commission presented its proposal for the next MFF for the years 2028-2034, amounting to almost EUR 2,000 billion. The new MFF aims to streamline EU funding by consolidating the number of financial programs and increasing flexibility to react faster to unexpected crises. It focuses on boosting European competitiveness through strategic investments in clean technology and simplified national partnership plans for targeted regional impact. Discussions on the proposals have progressed at both technical and political levels in the General Affairs Council, with adoption targeted for the end of 2026.

The most important component of the EU Recovery Instrument is the Recovery and Resilience Facility ("RRF"), with up to EUR 577 billion (in current prices) in loans and grants available to support reforms and investments undertaken by the EU Member States. The balance of the funds under the EU Recovery Instrument is being employed through existing EU instruments and assistance programs. To access the RRF, EU Member States are required to submit national recovery and resilience plans which are assessed by the European Commission and then approved by the Council of the EU on a case-by-case basis. An EU Member State may request further disbursements up to twice a year upon reaching certain agreed milestones and targets. Under the RRF, all milestones must be achieved by 31 August 2026, with the final disbursements by the European Commission to be completed by 31 December 2026. As of March 2026, the European Commission had disbursed EUR 395.5 billion to EU Member States under the RRF, thereof EUR 239 billion were in the form of grants and EUR 156.5 billion in the form of loans. In February 2023, the European Parliament and the Council adopted an amending regulation to include REPowerEU chapters in the RRF. The purpose of REPowerEU is to strengthen the strategic autonomy of the EU by diversifying its energy supplies and ending its dependency on Russian fossil fuel imports in response to the energy crisis of 2022. The 2026 EU budget, which was adopted by the Council and the European Parliament in November 2025, amounts to EUR 192.8 billion in commitment appropriations and EUR 190.1 billion in payment appropriations.

To implement the EU Recovery Instrument, the EU's Own Resources Decision, which defines how the EU budget is financed and was adopted by the Council on December 14, 2020, pursuant to the special legislative procedure applicable thereto, was ratified by all EU Member States in accordance with their own constitutional requirements. Under the Own Resources Decision, the European Commission is authorized, on an exceptional basis, to temporarily borrow up to EUR 750 billion (in 2018 prices) on the capital markets. In June 2023, the Commission proposed to amend the Own Resources Decision to include revenues from emissions trading, resources generated via the carbon border adjustment mechanism, which aims to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries, and temporary statistical own resources based on company profits. In July 2025 the European Commission proposed to amend the system of own resources by additional resources including an annual lump-sum contribution from companies tax resident in the EU, pending Council approval since then. In first half of 2025, the Commission raised EUR 85.8 billion via long-term EU bonds. While the proceeds from the EU bonds mainly benefited the EU Recovery Instrument, EUR 3.1 billion were used for the disbursement under the Ukraine facility and EUR 7 billion under the macro-financial assistance (MFA) under the G7 ERA initiative. At the end June 2025, the overall outstanding amount of EU bonds reached EUR 661.2 billion, of which EUR 75.1 billion were raised through NextGenerationEU green bonds. In addition, EUR 75.1 billion of short-term debt in EU bills was outstanding. The European Commission has announced plans to issue long-term EU bonds in an amount of EUR 70 billion in second half of 2025, to be complemented by short-term EU bills.

*Sources: European Commission, Europe in 12 lessons by Pascal Fontaine (https://op.europa.eu/en/publication-detail/-/publication/a5ba73c6-3c6a-11e8-b5fe-01aa75ed71a1); European Banking Authority, Regulation and policy, Passporting and supervision of branches (https://eba.europa.eu/regulation-and-policy/passporting-and-supervision-branches); European Commission, Competition Policy, State Aid (https://competition-policy.ec.europa.eu/state-aid_en); European Commission, Competition Policy, State Aid, Important Projects of Common European Interest (IPCEI) (https://competition-policy.ec.europa.eu/state-aid/ipcei_en); European Commission, Competition Policy, State Aid, Clean Industrial Deal State Aid Framework (CISAF) (https://competition-policy.ec.europa.eu/about/contribution-clean-just-and-competitive-transition/clean-industrial-deal-state-aid-framework-cisaf_en); European Council, Council of the European Union, Policies, The EU's annual budget (https://www.consilium.europa.eu/en/policies/eu-annual-budget/); European Council, Council of the European Union, Policies, The EU long-term budget (The EU long-term budget), Timeline - EU long-term budget 2021-2027 (https://www.consilium.europa.eu/en/policies/eu-long-term-budget/timeline-long-term-eu-budget-2021-2027/);; European Commission, The 2021-2027 EU budget – What's new? (https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/2021-2027/whats-new_en#revision-of-the-eu-budget-2021-2027); European Council, Council of the European Union, The EU long-term budget (https://www.consilium.europa.eu/en/policies/eu-long-term-budget/);European Commission, Strategy and policy, EU budget, The 2028-2034 EU budget for a stronger Europe (https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/eu-budget-2028-2034_en); European Commission, Strategy and policy, Recovery Plan for Europe (https://commission.europa.eu/strategy-and-policy/recovery-plan-europe_en); European Council, Council Decision (EU, Euratom) 2020/2053 (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32020D2053); European Union, Proposal for a COUNCIL DECISION on the system of own resources of the European Union and repealing Decision (EU, Euratom) 2020/2053 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52025PC0574&qid=1753797262498); European Commission, Revenue, The next generation of EU own resources (https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/2021-2027/revenue/next-generation-eu-own-resources_en); European Commission, Recovery and Resilience Scoreboard(https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.html); European Commission, Business, Economy, Euro, Economic recovery, Recovery and Resilience Facility (https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility_en); European Council, Council of the European Union, EU recovery plan: Council adopts REPowerEU, press release of February 21, 2023 (https://www.consilium.europa.eu/en/press/press-releases/2023/02/21/eu-recovery-plan-council-adopts-repowereu/); European Commission, REPowerEU (https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/repowereu-affordable-secure-and-sustainable-energy-europe_en); European Council, Council of the European Union, EU budget for 2026 (https://www.consilium.europa.eu/en/policies/eu-annual-budget/2026-budget/); Official Journal of the European Union, Definitive adoption (EU, Euratom) 2025/31 of the European Union's annual budget for the financial year 2026 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202600072); European Commission, Half-yearly report on the implementation of borrowing, debt management and related lending operations pursuant to Article 13 of Commission Implementing Decision C(2023)8010, September 24, 2025 (https://commission.europa.eu/document/download/7338c8a8-7a0d-4bae-8e7c-611503cce235_en?filename=H1%202025%20Half-yearly%20report%20on%20the%20implementation%20of%20borrowing%2C%20debt%20management%20and%20related%20lending%20operations.pdf); European Commission, Half-yearly report on the implementation of borrowing, debt management and related lending operations pursuant to Article 13 of Commission Implementing Decision C(2023)8010, September 24, 2025 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52025DC0588&qid=1773739968125).*

***Trade***. The EU is responsible for trade matters with third-party countries. In the area of trade in goods, the EU has exclusive competence. Furthermore, the EU's responsibilities also cover trade in services, the commercial aspects of intellectual property (such as patents), public procurement and foreign direct investment, whereas in the case of portfolio investments, investment protection and investment dispute settlement, the competence is shared between the EU and the EU Member States.

In particular, the EU is responsible for negotiating and concluding international trade agreements as well as identifying trade barriers and unfair trade practices by trading partners and adopting appropriate countermeasures. Trade agreements are negotiated by the European Commission upon authorization of the Council. Once the European Commission completes negotiations, the Council and the European Parliament examine the final negotiated agreement and decide whether or not to approve it. Trade agreements regulating areas of mixed responsibility between the EU and the EU Member States can only be concluded after ratification by all EU Member States.

As part of the EU's response to Russia's Invasion of Ukraine, the EU has imposed comprehensive economic sanctions, including trade restrictions. For more information on the trade restrictions, see "Political Integration—EU Sanctions".

In December 2024, the European Commission reached a political agreement with the MERCOSUR countries Argentina, Brazil, Paraguay and Uruguay on increasing bilateral trade and investment by lowering tariff and non-tariff trade barriers, by creating more stable and predictable rules for trade and investment, and by fostering the sustainable development of both regions in terms of climate change and social standards. Additionally, the MERCOSUR deal was extended by bilateral safeguards to strengthen protections for EU farmers. On 17 January 2026, the European Union and MERCOSUR signed the Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA). MERCOSUR represents a significant market for the EU, with goods exports amounting to EUR 55.2 billion and EUR 29.2 billion in services. In February 2026, the Commission announced it would proceed with the provisional application of the agreement, as authorized by the Council of the European Union, while the ratification of the agreement by the European Parliament is pending, awaiting a legal opinion from the European Court of Justice.

In January 2026, the EU and India concluded the largest Free Trade Agreement ever concluded by either side. The deal reduces tariffs in value of 96.6% of EU goods exports to India and privileged access to the Indian services market. Trade in services between the EU and India reached EUR 59.7 billion in 2023, up from EUR 30.4 billion in 2020.

The European Union and the United States have the world's largest bilateral trade, with trade in goods and services of EUR 1.6 trillion (in 2023). Under his "America First" agenda, US President Trump introduced restrictive trade measures on certain European exports during the first half of 2025. However, in July 2025, the EU and the United States reached a trade agreement, reaffirming in a joint statement their commitment to a reciprocal, fair, and balanced trade relationship. The Framework Agreement will now be incorporated into EU law, pending final approval by the European Parliament. Following the United States Supreme Court ruling in February 2026, which declared the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs illegal, the EU paused legislative work on the trade deal. On March 26, 2026 the European Parliament resumed the process under the condition of additional safeguards. These include a "sunrise clause", ensuring that the EU will reduce tariffs on U.S. imports only when the United States has fulfilled its own commitments.

In March 2026, the European Union and Australia concluded negotiations for a free trade agreement, alongside the adoption of a new security and defense partnership. The deal is the latest addition to the EU's agreements with the strategic Indo-Pacific region. Beyond trade liberalization, the deal secures the EU access to critical raw materials, bolstering the resilience of European supply chains against global instability. The agreement is currently entering the beginning of the ratification process.

*Sources: European Commission, EU trade relationships by country/region, Making trade policy (https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/making-trade-policy_en);); European Commission, Trade and Economic Security, EU-Mercosur agreement (https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/mercosur/eu-mercosur-agreement_en); European Commission, Trade and Economic Security, Questions and answers on the EU-Mercosur partnership agreement \* (https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_6245); European Commission, Trade, The EU-Mercosur trade agreement (https://commission.europa.eu/topics/trade/eu-mercosur-trade-agreement_en); European Commission, Trade and Economic Security, EU-India agreements (https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india/eu-india-agreements_en); European Commission, EU and India conclude landmark Free Trade Agreement, press release from January 27, 2026 (t); European Commission, Trade and Economic Security, United States (https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/united-states_en); European Commission, Memo on EU countermeasures on US tariffs, EU countermeasures on US steel and aluminum tariffs explained (https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_750); The White House, President Donald J. Trump on Trade, Fact Sheet, February 13, 2025 (https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-announces-fair-and-reciprocal-plan-on-trade/); The White House, President Donald J. Trump on Trade, Fact Sheet, April 2, 2025 (https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/); European Commission, Statement by President von der Leyen on the deal on tariffs and trade with the United States, press release from July 27, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1915); European Commission, Trade and Economic Security, Joint Statement on a United States-European Union framework on an agreement on reciprocal, fair and balanced trade from August 21, 2025 (https://policy.trade.ec.europa.eu/news/joint-statement-united-states-european-union-framework-agreement-reciprocal-fair-and-balanced-trade-2025-08-21_en); European Parliament, News, EU–US trade legislation: legislative work on hold following US Supreme Court ruling (https://www.europarl.europa.eu/news/en/press-room/20260223IPR36005/eu-us-trade-legislation-legislative-work-on-hold-following-supreme-court-ruling); European Parliament, EU US trade deal: MEPs set conditions for lowering tariffs on US products, press release from March 26, 2026 (https://www.europarl.europa.eu/news/en/press-room/20260323IPR38830/eu-us-trade-deal-meps-set-conditions-for-lowering-tariffs-on-us-products); European Commission, EU and Australia strengthen relations with Security and Defence Partnership and Trade Agreement, press release from March 24, 2026 (https://ec.europa.eu/commission/presscorner/detail/en/ip_26_645); European Commission, Questions and answers on the EU-Australia Trade Agreement (https://ec.europa.eu/commission/presscorner/detail/en/qanda_26_648).*

***EU Response to the Energy Crisis***. Since the fall of 2022, and significantly exacerbated by Russia's invasion of Ukraine, Europe has been facing an unprecedented energy crisis involving hikes in energy prices and disruptions to energy supply. In response, the EU Member States implemented several measures on the national and supranational levels to ensure affordable and competitive energy for EU consumers, increase the EU's energy security and preparedness in the event of emergencies, and strengthen the energy resilience and autonomy of EU Member States. In early 2022, the heads of the EU Member States had jointly decided to phase out the EU's dependency on Russian fossil fuels. In this context, the European Commission initiated the REPowerEU plan discussed above under "—The "EU Budget and the EU Recovery Instrument" put in place the Temporary Crisis and Transition Framework discussed above under "—State Aid". The joint action was successful. Several European emergency energy rules have therefore ended. For instance, the market correction mechanism, that was intended to limit episodes of extraordinarily high gas prices in the EU, and the emergency regulation for joint purchasing (Aggregate EU) of natural gas have ended. Aggregate EU has since been replaced by a permanent framework within the EU Energy and Raw Materials Platform to facilitate long-term demand aggregation. Other introduced measures have been extended to further secure the gas supply and strengthen energy market resilience , such as the measure for accelerating the deployment of renewable energy and the continuation of coordinated demand-reduction measures for gas. In July 2025, the Council agreed to a two-year extension of the gas reserve filling rules until the end of 2027, while enabling more flexibility to adapt to changing market conditions. In January 2026, the Council reaffirmed its commitment to fully phasing out imports of Russian LNG and pipeline gas by the end of 2026 and autumn 2027, respectively.

*Sources: European Council, Council of the European Union, Policies, Energy prices and security of supply, accessed on May 3, 2024 (https://www.consilium.europa.eu/en/policies/energy-prices-and-security-of-supply); European Commission, Energy, Actions and measures of energy supply (https://energy.ec.europa.eu/topics/markets-and-consumers/actions-and-measures-energy-prices_en#accelerating-renewables-permitting); European Council, Council of the European Union, Gas storage: Council greenlights 2-year extension of reserves filling rules to safeguard winter supply (https://www.consilium.europa.eu/en/press/press-releases/2025/07/18/gas-storage-council-greenlights-2-year-extension-of-reserves-filling-rules-to-safeguard-winter-supply/).*

***European Defense***. The changed security situation in Europe at the beginning of 2025 prompted the EU to strengthen its defense capabilities and enhance the readiness of the European defense industry over the long term. In March 2025 the European Commission and the High Representative for Foreign Affairs published a White Paper for European Defense that sets out a vision to significantly foster European defense readiness. The White Paper is backed by the ReArm Europe Plan/Readiness 2030. The Plan outlines measures for mobilizing up to EUR 800 billion to support the defense investments of EU Member States. For creating a fiscal space of up to EUR 650 billion on the EU Member State level the Commission called for a coordinated activation of the national escape clause. See "EU Economic Governance – Stability and Growth Pact". In May 2025 the Council adopted a new EU financial instrument called Security Action for Europe ("SAFE") that is supposed to provide EU Member States with up to EUR 150 billion of loans backed by the headroom of the EU budget. The funds will be raised by the EU on capital markets to offer EU Member States loans with advantageous financing terms. SAFE is intended to support member states in making rapid and significant increases in their defense investments through common procurement. In February 2026, the Council authorized SAFE defense funding for 16 EU member states making EUR 14.4 billion available of pre-financing. As of March 2026, the Council is evaluating the national defense investment plans for another three countries. In addition, private capital will be mobilized by accelerating the Savings and Investment Union and through the European Investment Bank to support European rearmament. In addition, the Commission proposed in June 2025 a Defense Readiness Omnibus. This package contains measures that will help simplify rules to speed up the development of defense capabilities and infrastructure by Member States and industry awaiting enforcement. In December 2025, the Council adopted the European Defense Industry Program (EDIP) providing EUR 1.5 billion in EU grants for the period 2025-2027. EU member states have significantly increased their defense expenditure to EUR 381 billion in 2025, representing 2.1% of EU's GDP — up from 1.9% in 2024.

*Sources: European Commission, Future of European Defense, Acting on defence to protect Europeans (https://commission.europa.eu/topics/defence/future-european-defence_en); European Commission, Press statement by President von der Leyen on the defence package, press release from March 4, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/statement_25_673); European Council, Council of the European Union, Security Action for Europe (SAFE) (https://www.consilium.europa.eu/en/policies/safe/); European Commission, Commission unveils Savings and Investments Union strategy to enhance financial opportunities for EU citizens and businesses, press release from March 19, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_802); European Council, Council of the European Union, European defence readiness(https://www.consilium.europa.eu/en/policies/european-defence-readiness/); European Council, Council of the European Union, EU defence in numbers (https://www.consilium.europa.eu/en/policies/defence-numbers/); European Council, Council of the European Union, SAFE: Council clears path for financial assistance to eight member states and concluding the Canada agreement (https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/safe-council-clears-path-for-financial-assistance-to-eight-member-states-and-concluding-the-canada-agreement/)*

***Monetary Integration***

The Federal Republic is a signatory to and has ratified the Treaty on European Union of February 1992 (also known as the "Maastricht Treaty"). The Maastricht Treaty was the basis for the establishment of the European Economic and Monetary Union ("EMU"). The EMU led, in turn, to the adoption of irrevocable conversion rates between the euro and the national currencies of the initial participating member states on December 31, 1998, and the introduction of the euro as the single European currency in the euro area on January 1, 1999. On January 1, 2002, banknotes and coins denominated in euro were introduced as legal tender to replace the national currencies in the twelve member states forming the euro area at that time (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain). Slovenia, Malta, Cyprus, Slovakia, Estonia, Latvia, Lithuania and Croatia subsequently joined the euro area. On January 1 2026, Bulgaria joined as newest member the euro area.

The ECB was established on June 1, 1998, as part of the European System of Central Banks ("ESCB"). According to the Maastricht Treaty, the primary objective of the ESCB is to maintain price stability. Without prejudice to the objective of price stability, the ESCB supports the general economic policies of the EU. See "— Monetary and Financial System" for more information on the ECB and ESCB as well as on the European financial system. The Eurosystem, consisting of the ECB and the national central banks of those EU Member States whose currency is the euro ("Euro Area Member States"), assumed sole responsibility for the monetary policy in the euro area on January 1, 1999.

*Sources: European Union, Principles, countries, history, Principles and values, Founding agreements, Treaty on European Union – Maastricht Treaty (https://european-union.europa.eu/principles-countries-history/principles-and-values/founding-agreements_en); European Central Bank, About us, Our history, arts and culture, Our history, Economic and Monetary Union (EMU) (https://www.ecb.europa.eu/ecb/history-arts-culture/history/emu/html/index.en.html); European Central Bank, The euro, Our money (https://www.ecb.europa.eu/euro/intro/html/index.en.html); European Central Bank, Monthly Bulletin, 10th Anniversary of the ECB (https://www.ecb.europa.eu/pub/pdf/other/10thanniversaryoftheecbmb200806en.pdf).*

***EU Economic Governance***

The EU economic governance framework aims to detect, prevent and correct problematic economic trends such as excessive government deficits or public debt levels, which can stunt growth and put economies at risk. The framework consists of the following main components.

***Stability and Growth Pact***. To strengthen the monitoring and coordination of national fiscal and economic policies, the EU Member States established the Stability and Growth Pact ("SGP") in 1997. In February 2024, the European Parliament and Council agreed to reform the economic governance rules of the SGP, based on a March 2023 proposal by the European Commission. The main objective of the new framework is to strengthen the EU Member States' sound finances, debt sustainability and promote sustainable and inclusive growth. Under the new framework, EU Member States are given a timeframe within which, through a combination of fiscal adjustment, growth-enhancing reforms and priority investments, their debt level is to be put on a sufficiently downward path. The SGP reference values of 3% for the GDP budget deficit and 60% for the GDP debt level remain in force. The new rules were adopted by the Parliament on April 23, 2024 and by the Council of the EU on April 29, 2024. They came into effect with their publication in the Official Journal of the EU on April 30, 2024.

As of 2025, fiscal surveillance is fully governed by the reformed framework, with the newly established medium-term fiscal-structural plans and their respective net expenditure paths serving as the primary basis for monitoring and enforcement.

The new framework requires EU Member States to set up a medium-term fiscal-structural plan for the next four or five years, the so-called adjustment period is extendable to up to seven years. The net expenditure path is intended to be the single operational indicator for the national plans. After the initial submission of the medium-term fiscal structural plans, the plans will be assessed by the European Commission and endorsed by the Council. Every April, EU Member States will be required to submit a progress report on the medium-term structural plan, which replaces the Stability and Convergence Programmes of the SGP. In addition, to ensure the coordination of fiscal policies among Euro Area Member States, governments are required by European economic governance rules to submit their draft budgetary plans for the following year to the European Commission by October 15 of each year. The European Commission will then assess whether the Members States' draft budgetary plans are consistent with their net expenditure paths, pursuant to the new regulation.

The preventive arm of the SGP binds EU Member States to their commitments towards sound fiscal policies. In this respect the new framework introduces risk-based surveillance which differentiates between EU Member States and their fiscal situation. For EU Member States with a government deficit greater than 3% of GDP or a public debt level greater than 60% of GDP, the European Commission will issue a country-specific "reference trajectory" and a corresponding level of the structural primary balance to be reached by the end of the adjustment process. This primary structural balance target is defined as the cyclically adjusted general government balance net of temporary measures and net of interest expenditure. Quantitative safeguards are intended to ensure declining debt and to provide a safety margin below the Maastricht Treaty deficit reference value of 3% of GDP in order to create fiscal buffers. Thus, the new rules replace the 1/20 debt reduction requirement for EU Member States with a debt level above 60% of GDP.

The corrective arm of the SGP consists of the excessive deficit procedure ("EDP"). The EDP ensures the correction of excessive budget deficits (defined as a deficit greater than 3% of GDP), excessive public debt levels (defined as a debt ratio greater than 60% of GDP without an adequate diminishing trend) or excessive control account deviations (defined as deviations from the "reference trajectory" in the EU Member State's net expenditure). EU Member States that fail to respect the SGP's preventive or corrective rules may ultimately face sanctions. For Euro Area Member States, these could take the form of warnings and financial sanctions including fines. In addition, all EU Member States could face a suspension of commitments or payments from the EU's structural and investment funds if they fail to abide by the corrective rules. The SGP contains rules for exceptional situations. In particular, in case of an unusual event outside the control of the EU Member State concerned, which has a major impact on the financial position of its general government, or in periods of severe economic downturn for the euro area or the EU as a whole, upon proposal of the European Commission and endorsement of the Council, EU Member States are allowed to depart from the budgetary requirements that would normally apply, provided that this does not endanger fiscal sustainability in the medium-term. When applied in the case of a severe economic downturn for the euro area or the EU as a whole, this rule is referred to as the "general escape clause."

The "general escape clause" under the SGP was deactivated at the end of 2023, after having been activated in March 2020 to permit EU Member States to deal adequately with the effects of the COVID-19 pandemic and extended in May 2022 after Russia's invasion of Ukraine created downside risks to economic activity. As of March 2026, Austria, Belgium, Finland, France, Italy, Malta, Poland, Slovakia, Hungary and Romania are subject to an ongoing excessive deficit procedure.

In the context of the European Commission's ReArm Europe Plan/ Readiness 2030 the Commission invited the EU Member States to activate the national escape clause to accommodate increased defense expenditure within the SGP on March 19, 2025. The National Escape Clause allows an EU Member State to deviate from its net expenditure path as set by the Council in the context of its medium-term fiscal structural plan. The coordinated activation limits the deviation to up to a maximum of 1.5% of GDP for each year for a period of up to four years for defense related expenditure. According to the Commission's proposal, EU Member States' excess expenditure for defense takes into account the increase in defense expenditure since 2021. As of March 2026, the Council activated the flexibility in EU fiscal rules to increase defense spending for Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia, Slovenia, Germany and Austria. See also "—European Defense" and "—Public Finance—Germany's General Government Deficit/Surplus and General Government Gross Debt."

*Sources: European Commission, Economy and Finance, Economic and fiscal governance (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance_en); European Commission, Commission welcomes political agreement on a new economic governance framework fit for the future, press release of February 10, 2024 (https://ec.europa.eu/commission/presscorner/detail/en/ip_24_711); European Commission, Regulation of the European Parliament and the Council on the effective coordination of economic policies and the multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52023PC0240); European Commission, Vade Mecum on the Stability & Growth Pact 2019 edition, pages 25 and 44 (https://economy-finance.ec.europa.eu/system/files/2019-04/ip101_en.pdf); European Commission, Fiscal policy guidance for 2024: Promoting debt sustainability and sustainable and inclusive growth, press release of March 8, 2023 (https://ec.europa.eu/commission/presscorner/detail/%20en/ip_23_1410); European Commission, Economy and Finance, Economic and fiscal governance, Stability and Growth Pact (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact_en); European Commission, Economy and Finance, Economic and fiscal governance, Stability and Growth Pact, Annual draft budgetary plans (DBPs) of euro area countries (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/annual-draft-budgetary-plans-dbps-euro-area-countries_en); European Commission, Economy and Finance, Economic and fiscal governance, Stability and Growth Pact, The preventive arm (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/preventive-arm_en); European Commission, Economy and Finance, Economic and fiscal governance, Stability and Growth Pact, The corrective arm / Excessive Deficit Procedure (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/corrective-arm-excessive-deficit-procedure_en); European Council, Council of the European Union, Statement of EU ministers of finance on the Stability and Growth Pact in light of the COVID-19 crisis, press release of March 23, 2020 (https://www.consilium.europa.eu/en/press/press-releases/2020/03/23/statement-of-eu-ministers-of-finance-on-the-stability-and-growth-pact-in-light-of-the-covid-19-crisis/); European Commission, 2022 European Semester - Spring Package, Communication from the Commission of May 23, 2022 (https://commission.europa.eu/system/files/2022-05/2022_european_semester_spring_package_communication_en.pdf); European Parliament, New EU fiscal rules approved by MEPs, press release of April 23, 2024 (https://www.europarl.europa.eu/news/en/press-room/20240419IPR20583/new-eu-fiscal-rules-approved-by-meps); European Council, Council of the European Union, Economic governance review: Council adopts reform of fiscal rules, press release of April 29, 2024 (https://www.consilium.europa.eu/en/press/press-releases/2024/04/29/economic-governance-review-council-adopts-reform-of-fiscal-rules/); EUR-Lex, Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 (https://eur-lex.europa.eu/eli/reg/2024/1263/oj); EUR-Lex, Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure (https://eur-lex.europa.eu/eli/reg/2024/1264/oj); EUR-Lex, Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States (https://eur-lex.europa.eu/eli/dir/2024/1265/oj); European Commission, Commission unveils the White Paper for European Defence and the ReArm Europe Plan/Readiness 2030, press release of March 19, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_793); European Commission, Communication from the Commission (https://defence-industry-space.ec.europa.eu/document/download/a57304ce-1a98-4a2c-aed5-36485884f1a0_en?filename=Communication-on-the-national-escape-clause.pdf); European Council, Council of the European Union, National escape clause for defence expenditure (https://www.consilium.europa.eu/en/policies/national-escape-clause-for-defence-expenditure-nec/).*

***Macroeconomic Imbalance Procedure***. Established in 2011, the macroeconomic imbalance procedure ("MIP") is a surveillance mechanism for the EU and the EU Member States that aims to identify potential economic risks early on, prevent the emergence of harmful macroeconomic imbalances and correct any existing excessive imbalances. EU Member States' medium-term fiscal-structural plans described above under "—Stability and Growth Pact" are required to ensure the delivery of investments and reforms to correct the imbalances identified under the MIP. The preventive arm of the procedure relies on an early warning system that uses a scoreboard of indicators and in-depth country reviews. This preventive arm allows the European Commission and the Council to provide preventive recommendations to the respective EU Member State at an early stage. In case of an EU Member State with excessive macroeconomic imbalances, the corrective arm may open an excessive imbalance procedure, under which the EU Member State concerned will have to submit a revised fiscal-structural plan and regular progress reports. The enforcement regime within the corrective arm comprises the option of imposing financial sanctions for Euro Area Member States, including fines of up to 0.1% of such Euro Area Member State's GDP, if a Euro Area Member State repeatedly does not comply with its obligations.

In the 2025 surveillance cycle, seven EU Member States, excluding Germany, were found to be experiencing imbalances or excessive imbalances. Consequently, during the 2026 surveillance cycle, these EU Member States, and additionally Estonia will be subject to an in-depth review in the context of the MIP (see also "—Stability and Growth Pact" and "—The Economy—International Economic Relations—Germany's Current Account Surplus and the Macroeconomic Imbalance Procedure").

*Sources: European Commission, Economy and Finance, Economic and fiscal governance, Macroeconomic Imbalance Procedure, Dealing with macroeconomic imbalances (https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/macroeconomic-imbalance-procedure/dealing-macroeconomic-imbalances_en); European Commission, Publications, 2026 European Semester: Alert Mechanism report (https://commission.europa.eu/publications/2026-european-semester-alert-mechanism-report_en); European Commission, Regulation of the European Parliament and the Council on the effective coordination of economic policies and the multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52023PC0240).*

***Financial Assistance in the EU***

EU countries experiencing or threatened by financing difficulties can request access to several financial assistance mechanisms. The main ones are described below.

***Temporary Financial Stability Mechanism***. In May 2010, the EU and Euro Area Member States established a temporary stability mechanism to safeguard the financial stability amid severe tensions in euro area sovereign debt markets, consisting of the European Financial Stabilisation Mechanism ("EFSM") and the European Financial Stability Facility ("EFSF"). Through the EFSM the European Commission is allowed to borrow up to a total of EUR 60 billion on behalf of the EU under an implicit EU budget guarantee. The EFSF was created as a temporary institution and since July 1, 2013 no longer engages in new financing programs. As of March 2026, the EFSF had outstanding loans to Ireland, Portugal and Greece of approximately EUR 163 billion. Debt securities issued by the EFSF to finance these loans are backed by irrevocable and unconditional guarantees and over-guarantees extended by the Euro Area Member States. The Federal Republic accounts for approximately 29% of the guarantees according to the contribution key. The EFSF will be dissolved and liquidated when all financial assistance provided to Euro Area Member States and all funding instruments issued by the EFSF have been repaid in full.

*Sources: European Commission, Economy and Finance, EU financial assistance, How is financial assistance provided?(https://economy-finance.ec.europa.eu/eu-financial-assistance/how-financial-assistance-provided_en); European Commission, Economy and Finance, EU financial assistance, Euro area countries, European Financial Stabilisation Mechanism (EFSM) (https://economy-finance.ec.europa.eu/eu-financial-assistance/euro-area-countries/european-financial-stabilisation-mechanism-efsm_en); European Commission, Economy and Finance, EU financial assistance, Euro area countries, European Financial Stability Facility (EFSF) (https://economy-finance.ec.europa.eu/eu-financial-assistance/euro-area-countries/european-financial-stability-facility-efsf_en); European Stability Mechanism, Financial Assistance, Programme Database, Programme Overview (https://www.esm.europa.eu/financial-assistance/programme-database/programme-overview); European Stability Mechanism, Explainers, Guarantees by EFSF Countries (https://www.esm.europa.eu/about-us/explainers#guarantees-by-efsf-countries).*

***European Stability Mechanism***. Since October 2012, the European Stability Mechanism ("ESM"), which was established as an intergovernmental organization under public international law by the Euro Area Member States, has been assisting in preserving the financial stability of the EMU. As of July 1, 2013, it assumed the tasks fulfilled by the EFSF and the EFSM and is currently the primary support mechanism for Euro Area Member States experiencing or threatened by severe financing problems, if such assistance is deemed essential to safeguard financial stability in the euro area as a whole. The ESM issues bonds or other debt instruments on the financial markets to raise capital to provide assistance, subject to certain conditions, to Euro Area Member States. Unlike the EFSF, which is based upon guarantees by Euro Area Member States, the ESM has total subscribed capital of EUR 708.5 billion provided by Euro Area Member States, which provides it with a lending capacity of EUR 500 billion. EUR 81 billion of the ESM's subscribed capital is in the form of paid-in capital with the balance of EUR 627.5 billion being callable capital. The contribution of each Euro Area Member State is based on the paid-in capital for the ECB. On this basis, the Federal Republic's contribution amounts to approximately 27% of the aggregate contributions to the ESM. The Federal Republic contributed approximately EUR 22 billion of paid-in capital to the ESM.

Financial assistance from the ESM is activated upon a request from a Euro Area Member State to the chairperson of the ESM's board of governors and is provided subject to strict conditions appropriate to the instrument chosen. The initial instruments available to the ESM have been modeled upon those available to the EFSF and include the extension of loans to a Euro Area Member State in financial difficulties, interventions in the primary and secondary debt markets, action based on a precautionary program, and the extension of loans to governments, or since December 2014 directly to affected financial institutions, for the purposes of recapitalizing financial institutions. Each instrument is to be linked to a memorandum of understanding which sets forth the conditions for financial support as well as the monitoring and surveillance procedures established to ensure the Euro Area Member State is progressing towards financial stability. In principle, decisions under the ESM are taken by mutual agreement. However, in the event that the European Commission and the ECB conclude that an urgent decision related to financial assistance is needed because the financial and economic sustainability of the euro area is threatened, the mutual agreement rule is replaced by a qualified majority of 85%. Given its voting rights of approximately 27%, the Federal Republic may veto any decision even under the emergency voting rule. As of March 2026, the ESM had loans in an aggregate principal amount of approximately EUR 72 billion outstanding to Spain, Cyprus and Greece.

*Sources: European Stability Mechanism, Who we are, History (https://www.esm.europa.eu/about-us/history); European Commission, Economy and Finance, EU financial assistance, Euro area countries, European Stability Mechanism (ESM) (https://economy-finance.ec.europa.eu/eu-financial-assistance/euro-area-countries/european-stability-mechanism-esm_en); European Stability Mechanism, Who we are (https://www.esm.europa.eu/about-us#headline-who_we_are); European Stability Mechanism, Explainers, The ESM, Capital Structure (https://www.esm.europa.eu/about-us/explainers#capital-structure); European Stability Mechanism, How we decide, ESM shareholders and their representatives in governing and oversight bodies (https://www.esm.europa.eu/about-us/governance#sharesandcapital);); European Stability Mechanism, Explainers, The ESM, Basic information (https://www.esm.europa.eu/about-us/explainers#basic-information); European Stability Mechanism, Financial Assistance, Financial assistance instruments, Lending toolkit (https://www.esm.europa.eu/financial-assistance/lending-toolkit); European Stability Mechanism, Explainers, Lending, Policy conditions attached to loans (https://www.esm.europa.eu/about-us/explainers#are-policy-conditions-always-tied-to-esm-loans-); European Stability Mechanism, Explainers, The ESM, ESM decision making (https://www.esm.europa.eu/about-us/explainers#esm-decision-making); European Stability Mechanism, Financial Assistance, Programme Database, Programme Overview (https://www.esm.europa.eu/financial-assistance/programme-database/programme-overview).*

On January 27 and February 8, 2021, the Euro Area Member States signed an agreement amending the treaty establishing the ESM. The reform establishes a common backstop to the Single Resolution Fund ("SRF") in the form of a credit line from the ESM to replace the direct recapitalization instrument for financial institutions, providing a financial safety net for bank resolutions in the European banking union (the "Banking Union"), which will help to protect financial stability (see "—Monetary and Financial System—Financial System— European Financial System—European System of Financial Supervision and European Banking Union" for more information on the Banking Union and the SRF). The maximum amount of ESM loans to the SRF is set at EUR 68 billion. The credit line may only be used as a last resort and to the extent that it is fiscally neutral in the medium term, i.e., it is repaid through ex-post contributions by banks over a period of three to five years. Moreover, the revised ESM Treaty envisages the introduction of single-limb collective action clauses for bonds with maturities of more than a year issued by governments of Euro Area Member States, which, if required, would facilitate orderly and predictable sovereign debt restructuring. Furthermore, the reformed ESM Treaty enables the ESM to have a stronger role in future economic adjustment programs and crisis prevention. The reform clarified that ESM precautionary instruments provide support to Euro Area Member States with sound fundamentals that could be affected by an adverse shock beyond their control in order to safeguard the financial stability of the euro area as a whole. The enforcement of the reformed ESM Treaty however remains pending, until the parliaments of all Euro Area Member States have ratified the reformed ESM Treaty.

*Sources: ESM, About us, ESM Reform (https://www.esm.europa.eu/about-esm/esm-reform); ESM, About ESM, ESM Treaty Reform - Explainer (https://www.esm.europa.eu/about-esm/esm-treaty-reform-explainer#ui-id-5); European Union, Terms of Reference of the 2022 CAC (https://economic-financial-committee.europa.eu/system/files/2021-04/EA%20Model%20CAC%20-%20Draft%20Terms%20of%20Reference.pdf); ESM, ESM Treaty Reform – Explainer (https://www.esm.europa.eu/about-us/esm-reform/esm-treaty-reform-explainer); European Council, Council of the European Union, Documents & Publications, Agreement Amending the Treaty Establishing the European Stability Mechanism (ESM) (https://www.consilium.europa.eu/en/documents-publications/treaties-agreements/agreement/?id=2019035&DocLanguage=en).*

**Statistical Standards**

***Statistical Standard for the National Accounts***

Since August 2014, the Federal Statistical Office has been calculating the German national accounts in accordance with the European System of National and Regional Accounts 2010 (ESA 2010) which, in turn, is based on the System of National Accounts (SNA 2008) of the United Nations. In 2024, a major revision of the National Accounts, harmonized Europe-wide, took place in Germany. The main purpose of the revision was to refine results by introducing new data sources, a new classification of private consumption expenditure and new calculation methods. The entire national accounting system was reviewed and revised and, where necessary, new findings were integrated into the calculations. To avoid breaks in time series, the results for Germany were recalculated from 1991 onwards. The revised results were published for the first time in July 2024.

*Sources: Statistisches Bundesamt, National Accounts, ESA 2010 methods and sources for the German GNI and its components, published on April 6, 2022 (https://www.destatis.de/EN/Themes/Economy/National-Accounts-Domestic-Product/Publications/Downloads-National-Accounts-Domestic-Product/esa-2010-methods.html?nn=214136); Statistisches Bundesamt, National accounts, domestic product, Major Revision of National Accounts 2024 (https://www.destatis.de/EN/Themes/Economy/National-Accounts-Domestic-Product/InfoRevision2024.html).*

***Statistical Standard for the Balance of Payments***

Since July 2014, the methodological concept of the German balance of payments statistics follows the sixth edition of the Balance of Payments and International Investment Position Manual ("BPM6"), the revised standard of the IMF. The application of BPM6 is binding for EU Member States by virtue of a regulation adopted by the European Commission. Balance of payments data since 1971 have been recalculated in accordance with BPM6. In July 2025 the IMF released the seventh edition of the Balance of Payments and International Investment Position Manual. Within the EU it is planned for its Member States to apply the new standards in the balance of payments in 2029.

*Source: Bundesbank, Statistics, External Sector, Balance of Payments, Methodological notes (https://www.bundesbank.de/en/statistics/external-sector/balance-of-payments/methodological-notes-794532); International Monetary Fund, Release of New Standards for Macroeconomic Statistics (BPM7) (https://www.imf.org/en/publications/policy-papers/issues/2025/07/10/release-of-new-standards-for-macroeconomic-statistics-bpm7-568453); Bundesbank, Update of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6)(https://www.bundesbank.de/en/statistics/external-sector/external-sector/update-of-the-sixth-edition-of-the-balance-of-payments-and-international-investment-position-manual-bpm6--845666).*

***Statistical Disclosure Standards of the International Monetary Fund***

Since February 2015, the Federal Republic has met the Special Data Dissemination Standard Plus ("SDDS Plus") of the IMF relating to coverage, periodicity and timeliness of economic data. The SDDS Plus was created in 2012 as an extension of the existing Special Data Dissemination Standard. By providing comparable economic and financial data, it is designed to improve the transparency of the financial sector and its international interdependencies and thus contributes to the identification of risks at an early stage. Although adherence by member countries to the SDDS Plus is voluntary, it carries a commitment requiring members to observe the standard and to provide certain information to the IMF about their practices in disseminating economic and financial data.

*Source: Bundesbank, Statistics, Set of indicators, SDDS Plus (Special Data Dissemination Standard) (https://www.bundesbank.de/en/statistics/sets-of-indicators/sdds-plus/sdds-plus-795798).*

**THE ECONOMY**

**Overview**

Since 1945, the Federal Republic's economic system has developed into a social market economy, combining the free initiative of the individual with progressive social principles. The *Grundgesetz* guarantees freedom of private enterprise and private property, provided that these basic rights are not exercised against the public good. The state mainly has a regulatory function in the market economy, setting the general framework of conditions within which market processes take place.

**Key Economic Figures**

The German economy is one of the world's largest economies, with an annual GDP of EUR 4,469.9 billion in 2025. In 2025, price-adjusted GDP increased by 0.2% against the backdrop of Russia's ongoing invasion of Ukraine and the tariffs imposed by the US. Compared to the level of 1991, which represents the first full year after German reunification on October 3, 1990, price-adjusted GDP increased by 48.3%. Productivity gains contributed to the growth in price-adjusted GDP since 1991, given that price-adjusted GDP per employee has risen by 25.4% since 1991. In calculating price-adjusted GDP, the Federal Statistical Office (*Statistisches Bundesamt*) uses a chain index based on the previous year's prices. In 2025, the GDP per capita at current prices was EUR 53,516 while the GDP per person employed at current prices was EUR 97,210.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – Detaillierte Jahresergebnisse (March 2026), Tables 2.1.1 and 2.1.4.*

As in many advanced economies, the services sector of the Federal Republic has become the largest contributor to GDP (in terms of gross value added). In 2025, services accounted for 71.2% of gross value added, measured at current prices, compared to 62.2% in 1991. The two most important subsectors were "trade, transport, accommodation and food services," accounting for 16.6% in 2025, compared to 16.1% in 1991, and "public services, education, health," accounting for 20.5% of gross value added in 2025, compared to 16.3% in 1991. The production sector (excluding construction) generated 22.9% of gross value added compared to 30.6% in 1991. Construction contributed 4.9% to gross value added in 2025, compared to 6.1% in 1991, and agriculture, forestry and fishing accounted for 1.2% of gross value added in 2024, compared to 1.0% in 1991.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – Detaillierte Jahresergebnisse (March 2026), Tables 3.2.1*

In 2025, private final consumption expenditure totaled 53.2%, gross capital formation amounted to 20.3% and government final consumption expenditure equaled 22.5%, in each case of GDP at current prices. Exports and imports of goods and services accounted for 40.4% and 38.1% of GDP at current prices, respectively. In 2022, Germany's trade surplus decreased substantially because of the deterioration of terms of trade as a result of Russia's invasion of Ukraine. In 2023, the trade surplus rebounded substantially and was almost as high as in 2021. In 2025, the trade balance (according to national accounts) showed a surplus equal to 2.4% of GDP (2024: 3.8% of GDP).

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – Detaillierte Jahresergebnisse (March 2026), Table 2.3.1.*

Russia's invasion of Ukraine at the end of February 2022 and the subsequent extreme rise in energy prices and its knock-on effects on consumer price inflation have dampened economic activity in Germany. The tariffs imposed by the US on Germany since April 2025 have also had a noticeable negative impact. In 2025, annual price-adjusted GDP was 0.2% higher than in 2024. Household final consumption expenditure increased by a price-adjusted 1.6% compared to 2024. Exports decreased by 0.4%, while imports increased by 3.6%, all on a price-adjusted basis. Accordingly, the growth contribution of net exports was -1.5 percentage points. Gross fixed capital formation decreased by 0.2%, in price-adjusted terms. Government final consumption expenditure increased by 0.3% on a price-adjusted basis.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – Detaillierte Jahresergebnisse (March 2026), Tables 2.3.2.*

The annual average rate of registered unemployment (as computed under the "national definition" of the Federal Employment Agency (*Bundesagentur für Arbeit*) increased from 6.0% in 2024 to 6.3% in 2025. Based on the internationally comparable method of calculation promulgated by the International Labour Organization ("ILO"), which is referred to as the "ILO definition," the annual average unemployment rate increased from 3.1% in 2024 to 3.5% in 2025. For an explanation of the differences between the national definition and the ILO definition, see "—Employment and Labor." Inflation as measured by the percentage change in the national consumer price index ("CPI") was 2.2% in 2025, the same as in 2024. General government gross debt stood at EUR 2,838.2 billion at year-end 2025, compared to EUR 2,693.8 billion at year-end 2024.

*Sources: Bundesagentur für Arbeit, Tabellen, Arbeitslosigkeit im Zeitverlauf: Entwicklung der Arbeitslosenquote (Jahreszahlen) 2025, Tabelle 2.1, (https://statistik.arbeitsagentur.de/SiteGlobals/Forms/Suche/Einzelheftsuche_Formular.html?nn=1610104&topic_f=laender-heft); Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (March 2026), Table 3.1.2 and Table 2.1.10; Deutsche Bundesbank, Time Series BBGFS1.A.BJ9059, General government debt as defined in the Maastricht Treaty - Germany – overall.*

The following table shows selected key economic figures for the Federal Republic for each of the years indicated.

Key Economic Figures

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions, unless otherwise indicated) | (EUR in billions, unless otherwise indicated) | (EUR in billions, unless otherwise indicated) | (EUR in billions, unless otherwise indicated) | (EUR in billions, unless otherwise indicated) |
| GDP – at current prices | 4469.9 | 4329.0 | 4219.3 | 3989.4 | 3682.3 |
| &nbsp;&nbsp;&nbsp;(change from previous year in %) | 3.3 | 2.6 | 5.8 | 8.3 | 6.7 |
| GDP - price-adjusted, chain-linked index (2020=100), not adjusted for calendar effects | 104.6 | 104.4 | 104.9 | 105.8 | 103.9 |
| &nbsp;&nbsp;&nbsp;(change from previous year in %) | 0.2 | -0.5 | -0.9 | 1.8 | 3.9 |
| GDP - price-adjusted, chain-linked index (2020=100), adjusted for calendar effects | 104.8 | 104.4 | 104.9 | 105.6 | 103.7 |
| &nbsp;&nbsp;&nbsp;(change from previous year in %) | 0.4 | -0.5 | -0.7 | 1.9 | 3.9 |
| Unemployment rate (ILO definition) (in %)<sup>(1)</sup> | 3.5 | 3.1 | 2.8 | 2.9 | 3.3 |
| Inflation (year-to-year change in the consumer price index (CPI) in %) | 2.2 | 2.2 | 5.9 | 6.9 | 3.1 |
| Balance of payments - current account | 202.7 | 255.1 | 232.4 | 162.5 | 254.4 |
| General government gross debt<sup>(2)</sup> | 2838.2 | 2693.8 | 2630.5 | 2569.0 | 2501.7 |

---

(1) Unemployed persons, available and seeking work.

(2) Definition according to Maastricht Treaty.

*Sources: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 - 4. Vierteljahr 2025 (February 2026), Tables 1.1 and 1.11; Statistisches Bundesamt, Consumer price indices, Consumer price index - overall index and by 12 divisions, Change on previous year (https://www.destatis.de/EN/Themes/Economy/Prices/Consumer-Price-Index/Tables/Consumer-prices-12-divisions.html#242118); Deutsche Bundesbank, Balance of payments statistics, 14-03-2025, Table I. Major items of the balance of payments (https://www.bundesbank.de/resource/blob/810958/da8cfebd71cf676ea6ee3046fd5f9fb2/472B63F073F071307366337C94F8C870/i-wichtige-posten-data.pdf); Deutsche Bundesbank, Statistics, General government debt as defined in the Maastricht Treaty - Germany - overall (https://www.bundesbank.de/dynamic/action/en/statistics/time-series-databases/time-series-databases/745582/745582?listId=www_v27_web011_21a&tsId=BBGFS1.A.BJ9059&dateSelect=2023).*

**Economic Outlook**

The economic situation in Germany has clouded over in recent months. At the beginning of the year, the economy already showed signs of cooling. By the end of the first quarter, the military conflict in the Middle East and the related restrictions on commercial shipping through the Strait of Hormuz had led to shortages and price increases for energy and other commodities, affecting businesses and private households in Germany. Against this background, the federal government now expects only a modest rise in real gross domestic product (GDP) of 0.5 percent for the current year. Assuming the conflict eases soon, these headwinds should gradually diminish later in the year, allowing fiscal impulses to become noticeable. Real GDP is projected to grow by 0.9 percent in 2027, and inflation is expected at 2.7 percent this year and 2.8 percent next year.

In addition to the conflict in the Middle East, international trade is also being burdened by protectionist measures and fragmentation. German export performance remains weak, partly due to reduced competitiveness. The recovery of the German economy is therefore being driven primarily by domestic demand. With rising real incomes, private consumption continues to support the German economy despite the erosion of purchasing power caused by energy price shocks resulting from the conflict in the Middle East. Fiscal impulses are likely to stimulate gross investment, while government spending, especially on infrastructure and defense, is likely to contribute to overall economic revival. Further economic development depends largely on how the conflict in the Middle East evolves and is subject to considerable uncertainty.

*Sources: Bundesministerium für Wirtschaft und Klimaschutz, Pressemitteilung, Geopolitische Krisen verzögern Erholung – Frühjahrsprojektion der Bundesregierung, April 22, 2026 (https://www.bundeswirtschaftsministerium.de/Redaktion/DE/Pressemitteilungen/2026/04/geopolitische-krisen-verzoegern-erholung.html)*

**General Economic Policy**

The Federal Government views structural reforms as central to strengthening Germany's economic recovery and growth potential. To this end, it is pursuing six interrelated core priorities: First, cutting unnecessary bureaucracy to foster new economic dynamism, aiming for more efficient regulatory frameworks without lowering important standards. Second, safeguarding fiscal sustainability by prioritizing investments and reviewing subsidies for effectiveness. Third, strengthening intergenerational fairness by improving opportunities for upward mobility and participation, including for skilled workers from abroad. Fourth, promoting equal living conditions, especially by supporting structurally weak regions, to secure social cohesion and acceptance of the social market economy. Fifth, closer integration of economic and security policy and further development of industrial policy to increase resilience to international risks and technological autonomy. Sixth, strengthening Europe as a common economic area by removing market barriers, advancing trade agreements, and protecting against unfair practices.

Given a sizeable investment backlog, a need to expand defense spending and a considerable underutilization of the economy, constitutional amendments and the establishment of the Special Fund for Infrastructure and Climate Neutrality (SVIK) in March 2025 have expanded fiscal room for maneuver. An investment initiative has been launched focusing on transport, digital, energy, and hospital infrastructure as well as housing. For 2026, significant increases in investment and various relief measures for energy and transmission costs are planned to provide cyclical stimulus. Improvements to the tax system and an investment-promoting package of measures are strengthening Germany as a business location and are intended to incentivize private investment. In parallel, reform commissions are being set up to further improve location conditions for businesses in a targeted way.

The Federal Government aims for clear, targeted, and efficient regulation and intends to regularly evaluate existing regulations to limit lawmaking processes to what is essential. Planning and permitting procedures are to be accelerated, for example through a reconfiguration of federal relations and a reform of procedural law. Regarding tax-funded social benefits, the government's Commission on Welfare State Reform has developed proposals for modernization and cutting red tape.

Public infrastructure is a decisive locational factor but in recent years has been burdened by deficiencies and investment backlogs. With the Special Fund for Infrastructure and Climate Neutrality, the federal government is providing €500 billion for the modernization of public infrastructure, thereby relying on comprehensive monitoring, expedited approvals, and partnerships with states and municipalities. In addition, private investment is to be stimulated, for example via the Germany Fund (Deutschlandfonds).

Regulation of new technologies must become more innovation friendly. The previously risk-averse approach has hampered innovation, particularly in key technologies such as artificial intelligence (AI) and genetic engineering, leading to value creation moving abroad. Startups face particular challenges, especially limited access to capital and relatively small capital markets by international standards. The Federal Government therefore aims to deepen the Capital Markets Union and provide startups with better access to venture capital.

A secure, affordable, and environmentally compatible energy supply remains essential; energy costs in Germany are still high by international standards and require adjustments for greater cost efficiency, digitalization, and more flexible electricity demand. Moreover, the ramp-up of the hydrogen market is being supported through public support for a hydrogen core-network and pragmatic regulation to strengthen investment and supply security.

The availability of qualified workers is also of central importance. A decline in the labor force due to demographic aging is dampening potential growth, while skills shortages and changing qualification requirements due to digitalization and AI pose additional challenges. The Federal Government is focusing on measures to increase employment, particularly among women, older people, and the unemployed, for example through the *Aktivrente* (active retirement), expanding childcare, and reforming basic income support. In addition, immigration from third countries is being specifically promoted through the establishment of a digital "Work-and-Stay Agency."

The tax and social contribution burden on labor in Germany is relatively high and, if it increases further, could impair the labor supply from inside and outside the country as well as competitiveness. The Federal Government is therefore focusing on sustainable financing of the social insurance systems and has appointed several expert commissions for this purpose. Measures such as the National Continuing Education Strategy and the Alliance for Initial and Continuing Training are being supported to provide more flexibility and productive adjustment in the labor market.

With regard to international order and security, Germany aims to assume a leading role within the EU, particularly in expanding free trade and trade relations. Agreements already concluded should be ratified promptly, and new partnerships—for example with India and ASEAN states—should be advanced. At the same time, trade barriers in the single market should be dismantled, the integration of the Capital Markets Union deepened, and a harmonized legal framework established to facilitate corporate growth. These measures strengthen resilience and growth by increasing the ability to absorb external and internal shocks.

The structural transformation of German industry is shaped by changing demand patterns and growing risks for economic security and supply chains. In principle, companies and businesses themselves are called upon to factor altered risk situations into their strategic decisions. However, some potential risks, from a macroeconomic perspective, far exceed the direct private costs. In such cases, the state bears responsibility—for example by protecting critical infrastructure, adopting EU preference arrangements for strategic sectors, and forging international raw materials partnerships. Energy cost relief and the national economic security strategy are central measures in this context as well.

For regionally balanced economic development, the Federal Government is relying on the Joint Task "Improvement of Regional Economic Structures" (GRW), whose relaunch from 2026 will create additional investment incentives and simplify access to funding.

The Federal Government is committed to maintaining and strengthening global climate protection ambitions. Germany was among the 197 states at the World Climate Conference in Paris in 2015, which committed to limiting global warming to well below 2°C, preferably to 1.5°C, and to achieving greenhouse gas neutrality worldwide by the second half of the century. At the national level, the Federal Climate Protection Act (*Bundes-Klimaschutzgesetz*, "KSG") provides the central legal framework for climate protection policy in Germany. In terms of greenhouse gas reduction targets, the KSG prescribes a reduction target of at least 65% for 2030 compared to 1990 levels, an interim reduction target of at least 88% for 2040 and greenhouse gas neutrality by 2045; after 2050, negative emissions are to be achieved across all sectors. The Federal Government continues to rely on a mix of instruments with carbon pricing, as well as targeted relief for citizens and companies to cushion social hardships and measures to promote investment in climate-friendly alternatives. The focus is, on the one hand, on the targeted expansion of network infrastructure, such as heating and hydrogen network or electric vehicle charging infrastructure. In addition, the federal government is returning the revenue from CO2 pricing to citizens and businesses by, among other things, introducing unbureaucratic and socially tiered relief measures and subsidies for housing and mobility. Competitive disadvantages compared to countries with lower decarbonization efforts are to be limited by the EU carbon border adjustment mechanism, with Germany advocating for a more effective and less bureaucratic design.

Overall, the Federal Government is pursuing a reform agenda that reduces red tape, advances innovation and digitalization, modernizes infrastructure, and makes the energy supply more affordable. Finally, the labor market is being made more flexible and work incentives are being strengthened to offset negative effects from demographic change. The reform agenda aims to increase potential growth and competitiveness while aligning social, economic, and environmental goals.

*Sources: Bundesministerium für Wirtschaft und Klimaschutz, Annual Economic Report 2026 (https://www.bundeswirtschaftsministerium.de/mwg-internal/de5fs23hu73ds/progress?id=aHTlDxuZDqkQKZFCgMBpmgtSj8OC3n3khRsjQqCsHiE,&dl)*

For further information on the Federal Republic's fiscal situation and prospects, see "—Public Finance—Germany's General Government Deficit/Surplus and General Government Gross Debt" and "—Public Finance—Fiscal Outlook." For information on government measures to stabilize Germany's financial system, see "—Monetary and Financial System—Financial System—German Financial System." For information on government budgets, see "—Public Finance."

**Gross Domestic Product**

The following tables show the structure of the Federal Republic's GDP at current prices by use and origin for each of the years indicated along with changes over the respective preceding period.

Structure of GDP — Use

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 | 2025 | 2024 | 2023 | 2022 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| Domestic uses | 4364.6 | 4165.4 | 4051.7 | 3890.8 | 3493.8 | 4.8 | 2.8 | 4.1 | 11.4 |
| &nbsp;&nbsp;&nbsp;Final private consumption | 2377.9 | 2283.0 | 2218.5 | 2094.0 | 1841.7 | 4.2 | 2.9 | 5.9 | 13.7 |
| &nbsp;&nbsp;&nbsp;Final government consumption | 1006.4 | 951.8 | 905.2 | 868.2 | 817.2 | 5.7 | 5.1 | 4.3 | 6.2 |
| &nbsp;&nbsp;&nbsp;Gross fixed capital formation | 908.0 | 885.7 | 894.1 | 861.8 | 780.0 | 2.5 | -0.9 | 3.8 | 10.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 267.2 | 267.1 | 277.4 | 264.0 | 235.6 | 0.0 | -3.7 | 5.1 | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction | 461.8 | 450.7 | 453.0 | 446.6 | 404.2 | 2.5 | -0.5 | 1.4 | 10.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other products | 179.0 | 168.0 | 163.7 | 151.2 | 140.1 | 6.6 | 2.6 | 8.3 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in inventories<sup>(1)</sup> | 72.4 | 45.0 | 33.9 | 66.8 | 54.9 |  |  |  |  |
| Net exports<sup>(1)</sup> | 105.3 | 163.5 | 167.6 | 98.6 | 188.5 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Exports | 1807.4 | 1793.7 | 1812.9 | 1820.3 | 1565.7 | 0.8 | -1.1 | -0.4 | 16.3 |
| &nbsp;&nbsp;&nbsp;Imports | 1702.1 | 1630.1 | 1645.3 | 1721.7 | 1377.2 | 4.4 | -0.9 | -4.4 | 25.0 |
| **Gross domestic product** | **4469.9** | **4329.0** | **4219.3** | **3989.4** | **3682.3** | **3.3** | **2.6** | **5.8** | **8.3** |

---

(1) Percentage changes are not presented due to the potentially changing signs of these net positions.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Tables 3.1 and 3.9.*

Structure of GDP — Origin

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 | 2025 | 2024 | 2023 | 2022 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | | | | (change in %) | (change in %) | (change in %) |
| Gross value added of all economic sectors: | 4044.8 | 3921.3 | 3853.9 | 3591.9 | 3294.1 | 3.1 | 1.7 | 7.3 | 9 |
| &nbsp;&nbsp;&nbsp;Agriculture, forestry and fishing | 39 | 39.6 | 39.2 | 39.7 | 27.8 | -1.6 | 1 | -1.2 | 42.9 |
| &nbsp;&nbsp;&nbsp;Production sector (excluding construction) | 924.7 | 916.1 | 943.4 | 845.8 | 764.2 | 0.9 | -2.9 | 11.5 | 10.7 |
| &nbsp;&nbsp;&nbsp;Construction | 199.9 | 193.2 | 187.2 | 173.9 | 162.2 | 3.5 | 3.2 | 7.6 | 7.3 |
| &nbsp;&nbsp;&nbsp;Trade, transport, accommodation and food services | 673.3 | 657.3 | 647.1 | 641.9 | 545.8 | 2.4 | 1.6 | 0.8 | 17.6 |
| &nbsp;&nbsp;&nbsp;Information and communication | 196.7 | 191.3 | 185.7 | 168.2 | 167.8 | 2.8 | 3 | 10.3 | 0.3 |
| &nbsp;&nbsp;&nbsp;Financial and insurance services | 158.9 | 152.7 | 149.2 | 135 | 138.8 | 4.1 | 2.4 | 10.5 | -2.7 |
| &nbsp;&nbsp;&nbsp;Real estate activities | 392.4 | 387.3 | 374.4 | 346.1 | 339.7 | 1.3 | 3.4 | 8.2 | 1.9 |
| &nbsp;&nbsp;&nbsp;Business services | 493.6 | 480.1 | 465.2 | 429.7 | 397 | 2.8 | 3.2 | 8.3 | 8.2 |
| &nbsp;&nbsp;&nbsp;Public services, education, health | 827.3 | 770.5 | 733.6 | 692 | 651.1 | 7.4 | 5 | 6 | 6.3 |
| &nbsp;&nbsp;&nbsp;Other services | 139.2 | 133.3 | 128.9 | 119.6 | 99.7 | 4.4 | 3.4 | 7.8 | 19.9 |
| Taxes on products offset against subsidies on products | 425.1 | 407.7 | 365.4 | 397.5 | 388.3 | 4.3 | 11.6 | -8.1 | 2.4 |
| Gross domestic product | **4469.9** | **4329.0** | **4219.3** | **3989.4** | **3682.3** | **3.3** | **2.6** | **5.8** | **8.3** |

---

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Tables 1.14 and 2.1.*

**Sectors of the Economy**

***Production Sector***

Following German reunification in 1990, industry in the eastern Länder (i.e., the territory of the former German Democratic Republic), has undergone a restructuring process. Today, the German production sector is characterized by a balanced mix of small, medium and large enterprises, and is almost entirely privately owned. Measured by its share in value added, 58.5% of the production sector is geographically concentrated in the western Länder of Bavaria, Baden-Württemberg and North Rhine-Westphalia. The main segments of the production sector relate to the manufacturing of motor vehicles, machinery and equipment, electrical and optical equipment, basic metals and fabricated metal products, as well as chemicals and chemical products. In 2025, the production sector's aggregate contribution to gross value added at current prices was 22.9% (excluding construction) and 27.8% (including construction), respectively. Its price- adjusted gross value added (excluding construction) decreased by 0.8% year-on-year in 2025.

*Sources: Volkswirtschaftliche Gesamtrechnungen der Länder, Reihe 1, Länderergebnisse Band 1 (February 2025), Table 2.3; Statistisches Bundesamt, Fachserie 18, Reihe 1.2 –4. Vierteljahr 2025 (February 2026), Tables 2.1 and 2.2.*

Output in the Production Sector <sup>(1)</sup>

(2021 = 100)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** | **2022** |
| **Production sector, total** | **91.7** | **92.7** | **97.0** | **98.7** |
| Industry <sup>(2)</sup> | 92.8 | 93.9 | 98.6 | 99.1 |
| of which: |  |  |  |  |
| Intermediate goods <sup>(3)</sup> | 84.7 | 86.1 | 90.7 | 96.3 |
| Capital goods <sup>(4)</sup> | 99.4 | 100.5 | 106.4 | 101.1 |
| Durable goods <sup>(5)</sup> | 84.8 | 87.5 | 93.5 | 101.0 |
| Nondurable goods <sup>(6)</sup> | 95.3 | 94.7 | 95.6 | 100.1 |
| Energy <sup>(7)</sup> | 83.6 | 82.3 | 84.8 | 98.7 |
| Construction <sup>(8)</sup> | 90.9 | 92.5 | 95.6 | 96.7 |

---

((1) Adjusted for working-day variations.

(2) Manufacturing sector, unless assigned to the main grouping energy, plus mining and quarrying.

(3) Including mining and quarrying except energy-producing goods.

(4) Including manufacture of motor vehicles and components.

(5) Consumption goods that have a long-term use, such as furniture.

(6) Consumption goods that have a short-term use, such as food. Including printing and service activities related to printing.

(7) Electricity, gas, steam and hot water supply, mining and quarrying of energy-producing materials, and especially manufacture of refined
petroleum products.

(8) Comprises the economic classifications "Site preparation" and "Building of complete constructions or parts thereof;
civil engineering."

*Source: Deutsche Bundesbank, Monatsbericht März 2025, Table XI.2.*

***Services Sector***

As in most other industrialized countries, the services sector, which comprises "trade, transport, accommodation and food services," "information and communication," "financial and insurance services," "real estate activities," "business services," "public services, education, health" as well as "other services," has expanded in recent years and is currently the largest contributor to gross value added. In 2025, the services sector's aggregate contribution to gross value added at current prices was 71.2%, compared to 62.2% in 1991. Within the services sector, "public services, education, health" represented the largest subsector in terms of contribution to total gross value added at current prices, contributing 20.5% in 2025 after 16.3% in 1991.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 2025 (February 2026), Table 2.1.*

**Employment and Labor**

Labor market conditions deteriorated slightly in 2025 due to economic stagnation. In 2025, the average unemployment rate according to the national definition was 6.3%, compared to 6.0% in 2024. Under the ILO definition, the average unemployment rate was 3.5% in 2025 compared to 3.1% in 2024. The number of persons resident in Germany who were either employed or self-employed was 45.8 million in 2025, the same as in 2024.

*Sources: Bundesagentur für Arbeit, Tabellen, Arbeitslosigkeit im Zeitverlauf: Entwicklung der Arbeitslosenquote (Jahreszahlen) 2025, Tabelle 2.1, (https://statistik.arbeitsagentur.de/SiteGlobals/Forms/Suche/Einzelheftsuche_Formular.html?nn=1610104&topic_f=laender-heft); Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (March 2026), Table 3.1.2.*

The following table presents data with respect to employment and unemployment for each of the years indicated. The ILO definition and the national definition of unemployment differ in various ways. Further, the national definition of unemployment is applied to administrative data whereas unemployment according to the ILO is measured using surveys.

Employment and Unemployment

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
| Employed (in thousands)–ILO definition | 45830 | 45830 | 45782 | 45469 | 44909 |
| Unemployed (in thousands)–ILO definition <sup>(1)</sup> | 1652 | 1490 | 1342 | 1355 | 1517 |
| Unemployment rate (in %)–ILO definition | 3.5 | 3.1 | 2.8 | 2.9 | 3.3 |
| Unemployed (in thousands)–national definition <sup>(2)</sup> | 2948 | 2787 | 2609 | 2418 | 2613 |
| Unemployment rate (in %)–national definition <sup>(3)</sup> | 6.3 | 6.0 | 5.7 | 5.3 | 5.7 |

---

(1) Unemployed persons, available and seeking work.

(2) Registered unemployed persons, available and seeking work (but including persons working up to 15 hours per week).

(3) As a percentage of the total work force (excluding armed forces).

*Sources: Bundesagentur für Arbeit, Monatsbericht zum Arbeits- und Ausbildungsmarkt: Dezember und das Jahr 2025, Table 9; Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Table 1.11.*

The following table presents data with respect to the employment rate broken down by gender and age for 2024

Employment Rate – Breakdown by Gender and Age

---

| | | | |
|:---|:---|:---|:---|
|  | | 2025 | 2025 |
| (Age in years) | Total | Men | Women |
| 15 to 19 | 28.5 | 30.0 | 26.8 |
| 20 to 24 | 70.6 | 72.1 | 69.0 |
| 25 to 29 | 81.9 | 84.0 | 79.7 |
| 30 to 34 | 83.9 | 88.7 | 78.8 |
| 35 to 39 | 85.1 | 89.7 | 80.3 |
| 40 to 44 | 86.1 | 89.7 | 82.5 |
| 45 to 49 | 87.2 | 89.8 | 84.5 |
| 50 to 54 | 85.8 | 88.4 | 83.2 |
| 55 to 59 | 83.3 | 86.4 | 80.2 |
| 60 to 64 | 67.5 | 71.6 | 63.5 |
| 65 to 69 | 22.8 | 26.3 | 19.7 |
| 15 to 64 | 77.2 | 80.2 | 74.1 |
| 65 and older | 10.2 | 13.1 | 7.8 |
| **Total** | **59.8** | **64.4** | **55.5** |

---

*Source: Statistisches Bundesamt, Erwerbsbeteiligung, Erwerbstätige und Erwerbstätigenquote nach Geschlecht und Alter, Ergebnis des Mikrozensus 2025 (https://www.destatis.de/DE/Themen/Arbeit/Arbeitsmarkt/Erwerbstaetigkeit/Tabellen/erwerbstaetige-erwerbstaetigenquote.html).*

The following table presents data with respect to the structure of employment by economic sector for 2025 and 2015.

Structure of Employment – Economic Sectors

---

| | | |
|:---|:---|:---|
|  | 2025 | 2015 |
|  | (Percent of total) | (Percent of total) |
| Agriculture, forestry and fishing | 1.2 | 1.5 |
| Production sector (excluding construction) | 17.2 | 18.7 |
| of which: manufacturing | 15.8 | 17.4 |
| Construction | 5.6 | 5.6 |
| Trade, transport, accommodation and food services | 21.9 | 22.8 |
| Information and communication | 3.4 | 2.8 |
| Financial and insurance services | 2.4 | 2.7 |
| Real estate activities | 1.1 | 1.1 |
| Business services | 13.4 | 13.5 |
| Public services, education, health | 26.9 | 24.3 |
| Other services | 6.8 | 6.9 |
| **Total (1)** | **100.0** | **100.0** |

---

(1) Figures may not add up due to rounding.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (March 2026), Table 2.2.9.*

The following table shows changes in the annual wage level per employee and unit labor costs per hour worked for each of the years indicated.

Wage Trends and Labor Costs

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
| Gross wages and salaries per employee in EUR | 48017 | 45933 | 43674 | 41027 | 39317 |
| Change from previous year in % | 4.5 | 5.2 | 6.5 | 4.3 | 3.3 |
| Unit labor costs per hour worked Index (2020=100) | 122.5 | 117.2 | 111.0 | 103.2 | 99.4 |
| Change from previous year in % | 4.5 | 5.6 | 7.6 | 3.8 | -0.6 |

---

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Tables 2.17 and 2.20.*

About one-seventh of the German work force consists of members of unions. The German Trade Union Federation (*Deutscher Gewerkschaftsbund*) serves as an umbrella organization for eight such unions. At the end of 2024, approximately 5.6 million persons were members of a union under the umbrella of the German Trade Union Federation, which is considerably less compared to the 11.8 million members in 1991, the first full year after German reunification. One major reason contributing to the strong decline since 1991 is the significant decline in manufacturing employment in the eastern Länder after reunification.

Each member union typically covers employees of an entire industry, regardless of the precise type of work done by those employees (the "one union, one industry" principle). As a result, employers usually deal with only one negotiating partner on the labor side in each specific industry. The unions and employers of each specific industry enter into collective labor agreements (*Tarifverträge*) without government intervention. The collective labor agreements often apply to all employees of a given industry, regardless of whether or not a particular employee is a member of a union, so long as the employer is a member of the relevant association of employers, which is often the case. Despite their binding character, collective labor agreements in many cases contain opt-out clauses (*Öffnungsklauseln)* allowing for company-specific adjustments to be negotiated between the employer and the works council at the specific company. Moreover, there is a range of additional possibilities to deviate from these agreements. Many employers in the eastern Länder are not members of employers' associations, which means that wages are individually negotiated, often resulting in wage levels that are lower than those provided for by the collective labor agreements.

*Sources: Institut der deutschen Wirtschaft, IW-Kurzbericht 14/2026 (https://www.iwkoeln.de/fileadmin/user_upload/Studien/Kurzberichte/PDF/2026/IW-Kurzbericht_2026-Gewerkschaftlicher-Organisationsgrad.pdf); DGB, Mitgliederzahlen 2020-2024 (https://www.dgb.de/der-dgb/geschichte-des-dgb/mitgliederzahlen/), European Trade Union Institute, National Industrial Relations, Countries, Germany, Trade Unions (https://www.worker-participation.eu/National-Industrial-Relations/Countries/Germany); Bundeszentrale für politische Bildung, kurz&knapp, Lexika, Handwörterbuch des politischen Systems, Tarifpolitik/Tarifautonomie (https://www.bpb.de/kurz-knapp/lexika/handwoerterbuch-politisches-system/202193/tarifpolitik-tarifautonomie/).*

**Social Security, Social Protection, and Social Policy**

The comprehensive system of social security and protection in effect in the Federal Republic includes in particular health insurance, long-term care insurance, retirement and disability pensions, participation benefits and benefits for medical rehabilitation, protection against the effects of occupational accidents and diseases by means of the mandatory occupational accident insurance, unemployment benefits, compensation for workers in short-time work schemes (*Kurzarbeit*), family benefits, benefits and rehabilitation for persons with disabilities, allowances to orphans and to single persons with dependents, and the provision of general public assistance to persons in need. The majority of the German population is covered by mandatory statutory pensions and health insurance. Hospitals and institutions caring for children and handicapped persons are operated by municipalities, churches, charitable institutions, and private providers.

Most of these social services are mainly funded through social security contributions from employers and employees, and a smaller part is funded through direct contributions by the Federal Republic, the Länder, municipalities and other public institutions, depending notably upon whether the respective social service is provided by an insurance-based system funded through contributions or a social-assistance-like program funded through taxes.

The Federal Republic's statutory pension insurance system operates on a pay-as-you-go basis, with contributions from current employers and employees funding payments to current retired persons. Generally, most employed and some self-employed and other persons are subject to mandatory insurance in the statutory retirement system. Certain persons, including employed members of particular professions (including some freelance professions) may apply for exemption, while others, as in the case of civil servants, are automatically exempt from mandatory participation in the statutory pension insurance system. Instead, exempted persons have to contribute to professional or public pension schemes or, in the case of civil servants and similar groups, they will benefit from special pension schemes for civil servants. Furthermore, the Retirement Funds Act (*Altersvermögensgesetz)* aims to ensure the long-term viability of the statutory pension insurance system by decreasing payments from the statutory pension insurance while encouraging insured persons to also sign up for designated privately funded or occupational pension schemes, for which certain bonus payments and tax incentives are provided.

Statutory health insurance coverage must remain available to all persons fulfilling the applicable eligibility criteria. Within the statutory health insurance system, insured persons may choose among a large number of statutory health insurance funds that have developed historically. Persons whose gross income exceeds certain thresholds as well as civil servants, self-employed persons and members of certain professions may opt out of the statutory system and choose private health insurance coverage, which, in case of opting-out, is obligatory as well. Contributions to the statutory health insurance system are based solely on the insured person's income situation and are independent of the insured person's gender, age and medical risk. By contrast, contributions towards private health insurance coverage are mainly calculated based on age, medical risk and the desired level of coverage.

Pursuant to the Citizen's Benefit Act (*Bürgergeld-Gesetz*), basic income support for jobseekers underwent a reform with effect from January 1, 2023. The citizen's benefit (*Bürgergeld)* is a cash benefit which jobseekers and their families receive from job centers to ensure their ability to cover their essential living expenses. Pursuant to the reform, in order to provide a reliable safety net for claimants of the citizen's benefit, among others, the current rate of inflation will be taken into account to a greater extent in the annual process of reviewing citizen's benefit amounts.

In 2025, social security revenue, as shown in the national accounts, amounted to EUR 936.0 billion, and expenditure was EUR 937.7 billion. The social security budget thus incurred a deficit of EUR 1.7 billion in 2025, after a deficit of EUR 11.8 billion in 2024.

*Sources: Federal Ministry of Labour and Social Affairs, Citizen's benefits: Basic income support for jobseekers (https://www.bmas.de/SharedDocs/Downloads/EN/PDF-Publikationen/a430e-buergergeld-englisch-pdf.pdf? blob=publicationFile&v=5); Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (March 2026), Table 3.4.3.7.*

In light of a changing population structure, the Federal Government has already implemented structural reforms to the statutory pension system in order to safeguard its long-term sustainability. In addition, the Federal Republic has implemented reforms of the statutory pension insurance, which, since 2012, have gradually raised the regular retirement age by two years to the age of 67. For example, the 1964 birth cohort will reach the regular retirement age of 67 in 2031.

To increase the sustainability of the health care system, the Federal Republic has implemented several structural reform measures to strengthen competition among providers in order to improve the efficiency and quality of health care services.

*Sources: Bundesministerium der Gesundheit, Themen, Krankenversicherung, Finanzierung, Gesundheitsfonds (https://www.bundesgesundheitsministerium.de/gesundheitsfonds.html); European Commission, Employment, Social Affairs & Inclusion, Germany - Pensions including survivors' pensions, Survivors' benefits (https://ec.europa.eu/social/main.jsp?catId=1111&intPageId=4554&langId=en).*

**International Economic Relations**

International economic relations are of major importance to the German economy. In 2025, exports and imports of goods and services amounted to 40.4 % and 38.1 % of GDP at current prices, respectively. The Federal Republic supports the EU in pursuing a liberal foreign trade policy aimed at dismantling tariffs and other barriers to trade. The responsibility for trade matters (particularly WTO and free trade agreements) in the EU rests with the European Commission. For further information on the EU's responsibility for trade matters, see "— General—The European Union and European Integration—Economic Integration."

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 2025 (February 2026), Table 3.1.*

Because of the openness of the Federal Republic's economy, German growth and employment depend particularly on open markets and foreign trade. Accordingly, the Federal Government supports efforts to reduce trade barriers. The strengthening of the multilateral trading system, with the WTO at its center, is a priority both for Germany and the EU. Bilaterally, the Federal Government and the European Commission champion ambitious, balanced and comprehensive free trade agreements in order to strengthen the international competitiveness of the European economy and thus growth and employment in Europe, while also contributing to sustainable development. An example of these agreements is the EU-Mercosur Agreement, which was signed on 17 January 2026 in the form of a partnership agreement and a separate interim trade agreement, creating one of the largest free trade areas in the world with over 700 million people. In addition, the Federal Government strongly supports ongoing negotiations of the EU for free trade agreements with India, the ASEAN countries and others. At the same time, the EU should continue to make rigorous use of its instruments to protect against market-distorting trade practices – where this is in the interest of the overall economy.

*Sources: Bundesministerium für Wirtschaft und Klimaschutz, Annual Economic Report 2026 (https://www.bundeswirtschaftsministerium.de/mwg-internal/de5fs23hu73ds/progress?id=aHTlDxuZDqkQKZFCgMBpmgtSj8OC3n3khRsjQqCsHiE,&dl)*

***Balance of Payments***

Germany's current account surplus fell sharply in 2025, dropping by €52 billion to €203 billion. In relation to GDP, the surplus decreased by 1½ percentage points to 4½% of GDP in 2025, reaching its second-lowest level in 20 years. The main factor behind this was a smaller surplus in the trade in goods. The main reason for the decline in the goods trade surplus was a significant increase in goods imports across the board. Imports from outside the euro area—including China—rose particularly sharply. Trade with China thus accounted for the bulk of the decline in the current account balance.

*Source: Deutsche Bundesbank, Monatsbericht März 2026, Chapter: Die deutsche Zahlungsbilanz für das Jahr 2025.*

According to data prepared by the Deutsche Bundesbank, applying the annual averages of a broad monthly indicator of Germany's price competitiveness compared to 60 trading partners based on consumer price indices, Germany's price competitiveness has been relatively stable since 1999, fluctuating within a range of approximately 10% of the average indicator value in the period from 1999 to 2025. In 2025, price competitiveness decreased somewhat compared to 2024, the indicator increased by 1.2%. The euro appreciated against the U.S. dollar by 4.4%. Variations in the exchange rates should be viewed in light of the fact that the Euro Area Member States account for a major part of German exports (39% in 2025).

*Source: Deutsche Bundesbank, Monatsbericht März 2026, Statistical Annex, Tables XII.3, XII.9 XII.11.*

The following table shows the Federal Republic's balance of payments for each of the years indicated.

Balance of Payments (Balances)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) |
| Current account |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade in goods (1) | 184186 | 236745 | 225374 | 125694 | 187660 |
| &nbsp;&nbsp;&nbsp;Services (2) | -73520 | -70658 | -60939 | -33722 | 3833 |
| &nbsp;&nbsp;&nbsp;Primary income | 160774 | 158358 | 134424 | 138965 | 122860 |
| &nbsp;&nbsp;&nbsp;Secondary income | -68698 | -69331 | -66418 | -68397 | -59947 |
| &nbsp;&nbsp;&nbsp;**Total current account** | **202743** | **255115** | **232441** | **162541** | **254406** |
| Capital account (3) | -28231 | -22235 | -23643 | -20043 | -3480 |
| Financial account |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net German investment abroad (increase: +) | 802629 | 517531 | 301104 | 318021 | 816110 |
| &nbsp;&nbsp;&nbsp;Net foreign investment in Germany (increase: +) | 539441 | 268148 | 112972 | 151667 | 611042 |
| &nbsp;&nbsp;&nbsp;**Net financial account (net lending: + / net borrowing: -)** | **263188** | **249383** | **188133** | **166354** | **205068** |
| Net errors and omissions (4) | 88676 | 16503 | -20666 | 23856 | -45858 |

---

(1) Including supplementary trade items.

(2) Including the freight and insurance costs of foreign trade.

(3) Including net acquisition/disposal of non-produced non-financial assets.

(4) Statistical errors and omissions, resulting from the difference between the balance on the financial account and the balances on the
current account and the capital account.

*Source: Deutsche Bundesbank, Balance of payments statistics, 13-03-2026, Table I. Major items of the balance of payments (https://www.bundesbank.de/resource/blob/810958/da8cfebd71cf676ea6ee3046fd5f9fb2/472B63F073F071307366337C94F8C870/i-wichtige-posten-data.pdf); Deutsche Bundesbank, Balance of payments statistics, 13-03-2026, Table IV. Financial account 1. Overview a) Total (https://www.bundesbank.de/resource/blob/811000/c16ebc6097db0e247730f33f2018a01e/472B63F073F071307366337C94F8C870/iv-kapitalbilanz-data.pdf).*

***Balance of Trade***

The following tables show information relating to foreign trade of the Federal Republic for each of the years indicated.

Trade in Goods (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) |
| Exports of goods | 1354309 | 1361557 | 1399779 | 1401388 | 1221066 |
| Imports of goods | 1170123 | 1124811 | 1174405 | 1275694 | 1033406 |
| **Trade balance** | **184186** | **236745** | **225374** | **125694** | **187660** |

---

(1) Including supplementary trade items.

*Source: Deutsche Bundesbank, Balance of payments statistics, 11-04-2025, Table I. Major items of the balance of payments (https://www.bundesbank.de/resource/blob/810958/da8cfebd71cf676ea6ee3046fd5f9fb2/472B63F073F071307366337C94F8C870/i-wichtige-posten-data.pdf).*

In 2024 the Federal Republic's principal export goods were: (1) motor vehicles, trailers and semi-trailers, (2) machinery and equipment, (3) computer, electronic and optical products and (3) chemicals and chemical products. The principal import goods were: (1) motor vehicles, trailers and semi-trailers (2) computer, electronic and optical products, (3) electrical equipment and (4) machinery and equipment. The Federal Republic has relatively few resources of industrial raw materials. As a result, it largely depends on imports to satisfy its demand for raw materials. This dependence on foreign supplies is particularly significant in the case of metals such as copper, tungsten, niobium, rare earth, rock phosphate, lithium carbonate, bauxite, manganese, titanium, and tin. The Federal Republic imports about 68% of its energy requirements, including 98% of its oil and 95% of its natural gas requirements.

*Sources: Statistisches Bundesamt, Statistischer Bericht Außenhandel - Dezember 2025 (February 2026), Tables 51000-05 and 51000-06 (https://www.destatis.de/DE/Themen/Wirtschaft/Aussenhandel/Publikationen/Downloads-Aussenhandel/statistischer-bericht-aussenhandel-2070100251125.xlsx?__blob=publicationFile&v=2); Bundesanstalt für Geowissenschaften und Rohstoffe, Deutschland – Rohstoffsituation 2024 (https://www.bgr.bund.de/DE/Themen/Rohstoffe/Downloads/Downloads-MR/rohsit-2024.html)*

***Germany's Current Account Surplus and the Macroeconomic Imbalance Procedure***

Within the framework of the Macroeconomic Imbalance Procedure (MIP), in November 2025, the European Commission published the Alert Mechanism Report 2026. It notes that Germany's current account surplus remained elevated in 2024, reflecting persistently weak domestic demand, but is on a decreasing trend due to a significant worsening of export performance. Productivity has stagnated and competitiveness indicators are mixed, with unit labor costs growth slightly above the euro area average but the real effective exchange rate appreciation in line with the euro area average in 2024. House prices decreased slightly in 2024 but there are signs of housing supply constraints. The scoreboard reading for Germany shows that three indicators were beyond their indicative thresholds in 2024, namely the export performance against advanced economies, unit labor costs, and – albeit only narrowly – government debt. However, no in-depth review of Germany will be conducted in 2026 as Germany was not identified as experiencing excessive imbalances.

The Federal Government supports the European Commission in the implementation of the MIP. However, the Federal Government points out that German foreign direct investments abroad increase the current account balance, as does the interest and capital income generated from past foreign direct investments. Furthermore, the current account surplus is the result of market-based decisions by companies and individuals that determine supply and demand. The German economy's specialization in the export of capital goods also plays a key role in the high surplus. Finally, an increase in public investment and defense spending after the reforms of the German debt brake in March 2025 will further reduce the current account surplus over the next years.

For general information on the MIP, see "—General—The European Union and European Integration—EU Economic Governance— Macroeconomic Imbalance Procedure."

*Sources: European Commission, Report from the Commission to the European Parliament, the Council, the European Central Bank and the European Economic and Social Committee, Alert Mechanism Report 2026, November 2025 (https://commission.europa.eu/document/download/59b1f3b6-c752-4a86-937e-c09597b3d1c5_en?filename=COM_2025_956_1_EN.pdf); European Commission, Commission Staff Working Document Accompanying the document, Alert Mechanism Report 2026, November 2025 (https://commission.europa.eu/document/download/7e90444e-12c2-4702-b60e-719eb04b5eb3_en?filename=SWD_2025_956_1_EN.pdf); Bundesministerium der Finanzen, Monatsbericht des BMF März 2017, Analysen und Berichte, Der deutsche Leistungsbilanzsaldo – Entwicklung und wirtschaftspolitische Implikationen (https://www.bundesfinanzministerium.de/Monatsberichte/2017/03/Inhalte/Kapitel-3-Analysen/3-2-Der-deutsche-Leistungsbilanzsaldo.html).*

Composition of Exported and Imported Goods

---

| | | |
|:---|:---|:---|
|  | 2025 | 2025 |
|  | Imports | Exports |
|  | (Percent of total) | (Percent of total) |
| Products of agriculture and hunting | 3.1 | 0.7 |
| Products of forestry | 0.1 | 0 |
| Fish and products of fishing | 0.1 | 0 |
| Coal and lignite | 0.3 | 0 |
| Crude petroleum and natural gas | 4.7 | 0.1 |
| Metal ores | 0.7 | 0 |
| Other mining and quarrying products | 0.1 | 0.1 |
| Food products | 5.9 | 5.3 |
| Beverages | 0.6 | 0.5 |
| Tobacco products | 0.4 | 0.2 |
| Textiles | 0.9 | 0.7 |
| Wearing apparel | 3 | 1.6 |
| Leather and related products | 1.3 | 0.9 |
| Wood and of products of wood and cork, except furniture; articles of straw and plaiting materials | 0.6 | 0.5 |
| Paper and paper products | 1.2 | 1.4 |
| Coke and refined petroleum products | 1.8 | 1.2 |
| Chemicals and chemical products | 7.4 | 8.6 |
| Basic pharmaceutical products and pharmaceutical preparations | 5.9 | 7.5 |
| Rubber and plastic products | 3 | 3.4 |
| Other non-metallic mineral products | 0.9 | 1.1 |
| Basic metals | 5.4 | 5 |
| Fabricated metal products, except machinery and equipment | 2.9 | 3.2 |
| Computer, electronic and optical products | 10.5 | 8.7 |
| Electrical equipment | 8.3 | 7.1 |
| Machinery and equipment not elsewhere classified | 7.6 | 13.7 |
| Motor vehicles, trailers and semi-trailers | 10.9 | 16.3 |
| Other transport equipment | 3.4 | 3.7 |
| Furniture | 1 | 0.7 |
| Energy | 0.6 | 0.4 |
| Other goods | 7.3 | 7.2 |
| **Total** | **100.0** | **100.0** |

---

*Source: Statistisches Bundesamt, Außenhandel – Statistischer Bericht – Dezember 2025 (25.02.2026), Tables 51000-05, 51000-06 (https://www.destatis.de/DE/Themen/Wirtschaft/Aussenhandel/Publikationen/Downloads-Aussenhandel/statistischer-bericht-aussenhandel-2070100251125.html); calculation of percentages by KfW based on import and export values in EUR thousands, respectively; figures may not add up to total due to rounding.*

Foreign Trade (Special Trade) by Groups of Countries and Countries (1)

---

| | | | |
|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 |
|  | (EUR in millions) | (EUR in millions) | (EUR in millions) |
| Exports to: |  |  |  |
| **Total** | **1563965** | **1549577** | **1575209** |
| of which: |  |  |  |
| United States | 147063 | 161427 | 157930 |
| France | 117228 | 115151 | 119825 |
| The Netherlands | 112426 | 109343 | 111835 |
| China (2) | 81267 | 89934 | 97346 |
| Italy | 83461 | 80271 | 85403 |
| United Kingdom | 79859 | 80324 | 78427 |
| Austria | 79982 | 76440 | 80355 |
| Switzerland | 73848 | 67964 | 66780 |
| Belgium/Luxembourg | 65443 | 65077 | 67497 |
| New industrial countries and emerging markets of Asia (3) | 55010 | 58590 | 60971 |
| Spain | 59135 | 53758 | 54037 |
| Japan | 21015 | 21572 | 20238 |
| Imports from: |  |  |  |
| Total | **1362315** | **1306690** | **1357465** |
| of which: |  |  |  |
| China (2) | 170951 | 156847 | 156831 |
| The Netherlands | 96613 | 93049 | 102911 |
| United States | 94270 | 91828 | 94634 |
| Italy | 72541 | 67232 | 71323 |
| France | 69113 | 66928 | 69872 |
| New industrial countries and emerging markets of Asia (3) | 62379 | 62083 | 66716 |
| Switzerland | 55543 | 52582 | 51757 |
| Belgium/Luxembourg | 50906 | 50897 | 56141 |
| Austria | 53702 | 51953 | 53744 |
| Spain | 39122 | 39470 | 38636 |
| United Kingdom | 38577 | 36183 | 36770 |
| Japan | 22073 | 22591 | 25568 |

---

(1) Exports (f.o.b.) by country of destination, imports (c.i.f.) by country of origin. Special trade consists mainly of goods that are
imported into the Federal Republic for use, consumption, adaptation or processing, as well as goods that are produced, manufactured, adapted
or processed in the Federal Republic and subsequently exported.

(2) Excludes Hong Kong.

(3) Includes Brunei Darussalam, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.

*Source: Deutsche Bundesbank, Monatsbericht März 2026, Table XII.3.*

***Foreign Direct Investment***

The following table presents data with respect to foreign direct investment stocks at year-end 2023.

Foreign Direct Investment Stocks at Year-End 2023

---

| | | |
|:---|:---|:---|
|  | Outward (1) | Inward (2) |
|  | (EUR in billions) | (EUR in billions) |
| **Total (3)** | **1617.5** | **726.1** |
| Selected countries and regions |  |  |
| European Union | 618.3 | 431.9 |
| &nbsp;&nbsp;&nbsp;of which: European Monetary Union | 460.1 | 403.4 |
| United Kingdom | 100.3 | 52.5 |
| Switzerland | 3.4 | 51.0 |
| Russia | 7.7 | 1.9 |
| United States | 436.3 | 89.9 |
| Canada | 24.4 | 1.5 |
| Central America | 30.5 | 12.2 |
| South America | 38.8 | 2.6 |
| Asia | 235.4 | 59.6 |
| &nbsp;&nbsp;&nbsp;of which: China | 115.8 | 4.5 |
| &nbsp;&nbsp;&nbsp;of which: India | 25.4 | 0.6 |
| &nbsp;&nbsp;&nbsp;of which: Japan | 16.3 | 33.7 |
| Australia | 23.1 | 3.3 |
| Africa | 13.0 | 2.6 |
| Selected economic sectors of investment object |  |  |
| Manufacturing | 396.2 | 162.7 |
| &nbsp;&nbsp;&nbsp;of which: Chemicals and chemical products | 92.3 | 21.6 |
| &nbsp;&nbsp;&nbsp;of which: Pharmaceutical products | 46.8 | 17.9 |
| &nbsp;&nbsp;&nbsp;of which: Machinery and equipment | 45.1 | 20.3 |
| &nbsp;&nbsp;&nbsp;of which: Motor vehicles, trailers and semi-trailers | 107.9 | 7.5 |
| Electricity, gas, steam and air conditioning supply | 13.0 | 40.4 |
| Wholesale and retail trade; repair of motor vehicles and motor cycles | 46.2 | 71.7 |
| Information and communication | 11.4 | 49.6 |
| Financial and insurance activities | 820.0 | 262.7 |
| Real estate activities | 6.0 | 38.5 |
| Professional, scientific and technical activities | 268.4 | 55.3 |

---

(1) German foreign direct investment abroad.

(2) Foreign direct investment in Germany.

(3) Primary and secondary direct investment (consolidated).

*Source: Deutsche Bundesbank, Direktinvestitionsstatistiken, II. Bestandsangaben über Direktinvestitionen (nach dem Erweiterten Richtungsprinzip) (https://www.bundesbank.de/de/statistiken/aussenwirtschaft/direktinvestitionen/direktinvestitionsstatistiken-804078), Tables 1I.1.b, II.2.b.*

**MONETARY AND FINANCIAL SYSTEM**

**The ESCB and the Eurosystem**

The ESCB comprises the ECB and the national central banks of all EU Member States, while the Eurosystem consists only of the ECB and the national central banks of the Euro Area Member States.

The Eurosystem is responsible for the single monetary policy for the euro area. Its decision-making bodies are the Governing Council and the Executive Board of the ECB. The national central banks of the EU Member States that are not part of the Eurosystem are represented in the General Council of the ECB, but have no voting right in the decision-making process, particularly with respect to monetary policy. The ESCB's primary objective is to maintain price stability. Without prejudice to this objective, the ESCB supports the general economic policies of the EU.

The Deutsche Bundesbank – Germany's national central bank within the ESCB – has the responsibility of implementing the single monetary policy in Germany and continues to perform various other tasks, including operating cashless payment systems, cash management and playing an important role in banking and financial market supervision, as further described below under the caption "— Financial System."

*Sources: European Central Bank, Annual Report 2016, pages 101-107 (https://www.ecb.europa.eu/pub/pdf/annrep/ar2016en.pdf); European Central Bank, About us, Our Organisation: ECB, ESCB and the Eurosystem (https://www.ecb.europa.eu/ecb/orga/escb/html/index.en.html); Deutsche Bundesbank, Tasks (https://www.bundesbank.de/en/tasks).*

**Monetary Policy**

***Monetary Policy Instruments of the ESCB and the ECB***

To achieve its operational goals, the ESCB conducts open market operations, offers standing facilities and requires credit institutions to maintain minimum reserves in accounts with the ESCB. Open market operations play an important role in the ESCB's monetary policy for the purposes of steering interest rates and managing the liquidity situation in the market. Available open market operations are short-term and longer-term reverse transactions, outright transactions, the issuance of debt certificates or foreign exchange swaps, and the collection of fixed-term deposits. Standing facilities are designed to provide or absorb overnight liquidity, and the imposition of minimum reserve requirements allows the ESCB to stabilize money market interest rates, create (or enlarge) a structural liquidity shortage. In addition, the ECB can also provide forward guidance, i.e., it can provide information about its future monetary policy intentions, based on its assessment of the outlook for price stability. In March 2024, the ECB completed the review of its operational framework for the implementation of monetary policy. The Governing Council agreed to continue to provide liquidity through a broad mix of instruments, including short-term and longer-term refinancing operations and, at a later stage, structural longer- term credit operations and a structural portfolio of securities.

*Sources: European Central Bank, Monetary policy & markets, Instruments, The Eurosystem's instruments (https://www.ecb.europa.eu/mopo/implement/html/index.en.html); European Central Bank, Monetary policy & markets, Decisions, statements & accounts (https://www.ecb.europa.eu/mopo/decisions/html/index.en.html).*

***Monetary Policy Strategy and Prices***

The ECB presented its updated monetary strategy in June 2025, following the revision in 2021. Its primary goal is to maintain medium-term price stability, which is defined as a year-on-year increase in the harmonized index of consumer prices for the euro area of 2%. The 2% target is symmetric. This means that the ECB considers negative and positive deviations from the target to be equally undesirable. Appropriately forceful or persistent monetary policy action in response to large, sustained deviations of inflation from the target in either direction is required, to avoid deviations becoming entrenched through de-anchored inflation expectations. ECB policy rates are considered to be the primary monetary instrument, but the choice of other policy tools such as asset purchasing programs can also be appropriate, particularly when policy rates are close to the lower bound or to preserve the functioning of monetary policy transmission. To respond flexibly to new challenges, the Governing Council may create new policy instruments. The use of all policy instruments is to be subjected to a comprehensive proportionality assessment. The Governing Council seeks to achieve price stability over the medium term. This allows for short-term deviations of inflation from its target, provides the necessary flexibility and makes it possible to take other considerations into account. Monetary policy decisions, including the evaluation of the proportionality of its decisions and potential side effects, are based on two interdependent analyses: (1) analysis and assessment of short-to medium- term developments in inflation, economic growth and employment (economic analysis); and (2) analysis of the transmission of monetary policy to the economy and financial developments (monetary and financial analysis). Scenario and sensitivity analysis are used to take into account not only the most likely path for inflation and the economy but also related risks and uncertainties.

*Sources: European Central Bank, Monetary policy & markets, Monetary policy strategy, The ECB's monetary policy strategy statement (2025) (The ECB's monetary policy strategy statement (2025); European Central Bank, Economic Analysis (https://www.ecb.europa.eu/mopo/devel/ecana/html/index.en.html); European Central Bank, Monetary and financial analysis (https://www.ecb.europa.eu/mopo/devel/monan/html/index.en.html).*

The following table shows price trends in Germany for the periods indicated.

Price Trends

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (change from previous year in %) | (change from previous year in %) | (change from previous year in %) | (change from previous year in %) | (change from previous year in %) |
| Harmonized index of consumer prices (HICP) | 2.3 | 2.5 | 6.0 | 8.7 | 3.2 |
| Consumer price index (CPI) | 2.2 | 2.2 | 5.9 | 6.9 | 3.1 |
| Index of producer prices of industrial products sold on the domestic market (1) | -1.2 | -1.8 | 0.2 | 29.8 | 9.6 |

---

(1) Excluding value-added tax.

*Source: Statistisches Bundesamt, Preise, Verbraucherpreisindizes, Harmonisierter Verbraucherpreisindex, Jahresdurchschnitte, Veränderung zum Vorjahr (https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Verbraucherpreisindex/Tabellen/Harmonisierter-Verbraucherpreisindex.html); Statistisches Bundesamt, Preise, Verbraucherpreisindizes, Verbraucherpreise, Jahresdurchschnitte, Veränderung zum Vorjahr (https://www.destatis.de/DE/Themen/Wirtschaft/Preise/Verbraucherpreisindex/Tabellen/Verbraucherpreise-12Kategorien.html); Deutsche Bundesbank, Monatsbericht Dezember 2023, Table XI.7; Deutsche Bundesbank, Monatsbericht Februar 2026, Table XI.7.*

**Official Foreign Exchange Reserves**

The following table shows the breakdown of the Federal Republic's official foreign exchange reserves as of the end of the years indicated.

Official Foreign Exchange Reserves of the Federal Republic (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | As of December 31, | As of December 31, | As of December 31, | As of December 31, | As of December 31, |
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) | (EUR in millions) |
| Gold | 395215 | 270580 | 201335 | 184036 | 173821 |
| Special drawing rights | 46528 | 50888 | 48766 | 48567 | 46491 |
| Foreign currency balances | 31851 | 33970 | 33376 | 34404 | 32649 |
| Reserve position in the IMF | 8201 | 8267 | 8782 | 9480 | 8426 |
| **Total** | **481795** | **363705** | **292259** | **276488** | **261387** |

---

(1) External position of the Deutsche Bundesbank in the EMU. Assets and liabilities vis-à-vis all EMU member countries and non-EMU
member countries.

*Source: Deutsche Bundesbank, Monatsbericht Februar 2026, Table XII.7.*

The Federal Republic's foreign reserve assets are managed by the Deutsche Bundesbank. Upon joining the monetary union, Euro Area Member States transferred foreign reserve assets consisting of foreign currency reserves and gold to the ECB in proportion to their share in the subscribed capital. At the end of 2025, the ECB's reserves amounted to a euro equivalent of EUR 116.8 billion. Bulgaria's adoption of the euro on 1 January 2026 was accompanied by an obligation for the Bulgarian National Bank to transfer additional foreign reserve assets amounting to EUR 1.48 billion to the ECB. The ECB manages the foreign reserve assets transferred to it. The foreign reserve assets not transferred to the ECB continue to be held and managed by the national central banks of the Euro Area Member States. In order to ensure consistency within the single monetary and foreign exchange policies of the EMU, the ECB monitors and coordinates market transactions conducted with those assets.

*Sources: European Central Bank, Annual Report 1998, page 74 (https://www.ecb.europa.eu/pub/pdf/annrep/ar1998en.pdf); European Central Bank, Annual Accounts 2025, 1.3.1 Balance Sheet (https://www.ecb.europa.eu/press/annual-reports-financial-statements/annual/annual-accounts/html/ecb.annualaccounts2025~ba3b593c99.en.html#toc16);European Central Bank, Decision (EU) 2026/115 as of December 31, 2025 (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L_202600115#ntr11-L_202600115EN.000101-E0011).*

**External Positions of Banks**

The following table shows the external assets and liabilities of the Deutsche Bundesbank and the banks (monetary financial institutions) of the Federal Republic as of the end of each of the years indicated.

External Financial Assets and Liabilities by Sector

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| Deutsche Bundesbank |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets | 1556.4 | 1464.4 | 1455.8 | 1617.1 | 1592.8 |
| &nbsp;&nbsp;&nbsp;of which: clearing accounts within ESCB (1) | 1023.5 | 1046.3 | 1093.4 | 1269.1 | 1260.7 |
| &nbsp;&nbsp;&nbsp;Liabilities (2) | 702.7 | 732.2 | 779.8 | 919.4 | 1009.5 |
| &nbsp;&nbsp;&nbsp;Net position | 833.7 | 741.2 | 675.9 | 697.6 | 583.3 |
| Banks |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans to foreign banks | 1410.4 | 1305.9 | 1166.9 | 926.6 | 1100.7 |
| &nbsp;&nbsp;&nbsp;Loans to foreign non-banks | 1198.2 | 1066.7 | 960.4 | 913.7 | 871.2 |
| &nbsp;&nbsp;&nbsp;Loans from foreign banks | 990.4 | 962.3 | 923.8 | 998.4 | 914.6 |
| &nbsp;&nbsp;&nbsp;Loans from foreign non-banks | 435.5 | 403.2 | 380.6 | 370.3 | 288.2 |

---

(1) Consists mainly of net claims from the interbank payment system for the real-time processing of cross-border transfers throughout
the EMU (TARGET2).

(2) Including estimates of currency in circulation abroad.

*Source: Deutsche Bundesbank, Monatsbericht März 2026, Tables IV.4 and XII.7.*

**Foreign Exchange Rates and Controls**

Since its introduction in 1999, the euro has become the second most widely used currency internationally. It is recognized by the IMF as a freely usable currency. Neither currency transactions nor capital market transactions require licenses or other permissions. However, in both cases entities or individuals providing related services on a commercial basis must be licensed. Gold may be imported and exported freely, subject only to the levy of VAT on some transactions.

*Sources: International Monetary Fund, Selected Decisions and Selected Documents of the IMF, Forty-Fourth Issue—Freely Usable Currencies, as updated December 31, 2024 (https://www.elibrary.imf.org/downloadpdf/display/book/9798229008341/9798229008341.pdf); Bank for International Settlements, Triennial Central Bank Survey, OTC Foreign exchange turnover in April 2025, September 2025, Table "OTC foreign exchange turnover by instrument, currency, counterparty and country", page 1 (https://www.bis.org/statistics/rpfx25_fx_annex.pdf); Bundesanstalt für Finanzdienstleistungsaufsicht, Banken, Finanzdienstleister und Wertpapierinstitute, Markteintritt, Wertpapierdienstleistungen, as updated on September 12, 2024 (https://www.bafin.de/DE/Aufsicht/BankenFinanzdienstleister/Markteintritt/Wertpapierdienstleistungen/wertpapierdienstleistungen_node.html#doc19645032bodyText1); Bundesanstalt für Finanzdienstleistungsaufsicht, Banken, Finanzdienstleister und Wertpapierinstitute, Markteintritt, Finanzdienstleistungen, as updated on November 11, 2025 (https://www.bafin.de/DE/Aufsicht/BankenFinanzdienstleister/Markteintritt/Finanzdienstleistungen/finanzdienstleistungen_artikel.html); International Monetary Fund, Annual Report on Exchange Arrangements and Exchange Restrictions 2023, published on December 19, 2024, page 1890 (https://www.elibrary.imf.org/display/book/9798400260391/9798400260391.xml?cid=lk-com-dsp-imf.org).*

The following table shows the annual average exchange rates for selected currencies in relation to the euro for the years indicated.

Annual Average Exchange Rates of the Euro (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
| U.S. dollars per euro | 1.1300 | 1.0824 | 1.0813 | 1.0530 | 1.1827 |
| Pound sterling per euro | 0.85679 | 0.84662 | 0.86979 | 0.85276 | 0.85960 |
| Japanese yen per euro | 169.04 | 163.85 | 151.99 | 138.03 | 129.88 |
| Swiss franc per euro | 0.9370 | 0.9526 | 0.9718 | 1.0047 | 1.0811 |
| Chinese yuan per euro | 8.1185 | 7.7875 | 7.6600 | 7.0788 | 7.6282 |

---

(1) Calculated from daily values.

*Source: Deutsche Bundesbank, Monatsbericht Februar 2026, Table XII.9.*

**Financial System**

***German Financial System***

***Overview***. As of December 31, 2025, 1,256 monetary financial institutions in Germany reported an aggregate balance sheet total of EUR 10,998 billion to the Deutsche Bundesbank. According to the Deutsche Bundesbank's classification, these institutions included:

&nbsp;&nbsp;&nbsp;&nbsp;· 227 commercial banks, with an aggregate balance sheet total of EUR 5,273.2
billion;

&nbsp;&nbsp;&nbsp;&nbsp;· 342 savings banks, with an aggregate balance sheet total of EUR 1,619.5 billion;

&nbsp;&nbsp;&nbsp;&nbsp;· the six regional institutions of those savings banks, including DekaBank
Deutsche Girozentrale (the central asset managing institution of the German savings banks) and five Landesbanken (German public law financial
institutions traditionally focusing on the banking business for and in the Land in which they operate), with an aggregate balance sheet
total of EUR 906 billion;

&nbsp;&nbsp;&nbsp;&nbsp;· 17 special-purpose credit institutions, including KfW, KfW IPEX-Bank, promotional
banks of the federal states (Landesförderinstitute), and, since July 2016, DZ BANK AG Deutsche Zentral-Genossenschaftsbank,
Frankfurt am Main (DZ Bank), the only remaining central institution of German credit cooperatives, with an aggregate balance sheet total
of EUR 1,524 billion;

&nbsp;&nbsp;&nbsp;&nbsp;· 645 credit cooperatives, with an aggregate balance sheet total of EUR 1,237.8
billion;

&nbsp;&nbsp;&nbsp;&nbsp;· 6 mortgage banks, with an aggregate balance sheet total of EUR 177.2 billion;

&nbsp;&nbsp;&nbsp;&nbsp;· 13 building and loan associations, with an aggregate balance sheet total
of EUR 260.3 billion; and

&nbsp;&nbsp;&nbsp;&nbsp;· 131 subsidiaries and branches of foreign banks located in the Federal Republic
with an aggregate balance sheet total of EUR 2,116 billion. These institutions, which are majority-owned by foreign banks, are also included
in the totals of the other categories of banks listed above.

*Source: Deutsche Bundesbank, Monthly Report February 2026, Table IV.2 (https://publikationen.bundesbank.de/caas/v1/media/988404/data/825f9fcee0b314336d07b4f8cecbb07b)*

The KWG currently regulates all banks except for the Deutsche Bundesbank and KfW (although it does regulate KfW IPEX-Bank).

Many important provisions of the KWG have become applicable by analogy to KfW with effect from January 1, 2016. For more information on the application of the KWG to KfW, see "KfW—General—Supervision and Regulation—Regulation." German commercial banking institutions operate as "universal" banks and are not restricted by law or otherwise from offering a complete range of diverse financial services.

***Supervision***. BaFin is responsible for the integrated supervision of financial services. Its primary objective is to ensure the proper functioning, stability and integrity of Germany as a financial center in the context of European integration and international cooperation, as well as to strengthen collective consumer protection through its regulatory actions. BaFin, which is subject to the legal and technical oversight of the Federal Ministry of Finance, operates exclusively in the public interest. It aims to counteract risks to the assets entrusted to financial institutions, including banks and insurance companies (solvency supervision), and to safeguard fair and transparent conditions in the markets (market supervision). In addition, BaFin has an investor protection role in that it seeks to prevent unauthorized financial business from being carried out.

The Deutsche Bundesbank is closely involved in the ongoing supervision of credit institutions by BaFin and has been assigned a substantial number of the ongoing operational tasks in banking supervision. Furthermore, until December 31, 2025, the German Federal Agency for Financial Market Stabilization (*Bundesanstalt für Finanzmarktstabilisierung*, or "FMSA") supervised two wind-up institutions, Erste Abwicklungsanstalt and FMS Wertmanagement, as well as Portigon AG (the legal successor of former Landesbank WestLB, which is in the process of being wound-up), all of which were founded under its auspices in order to stabilize the financial market (see "—Wind-up Institutions"). On January 1, 2026, legal supervision was transferred to the Federal Ministry of Finance.

In November 2014, the SSM – as one of the pillars of the Banking Union – became operational. Under the SSM, the ECB is the central prudential supervisor of financial institutions in the euro area as well as in non-euro area EU Member States that choose to join the SSM. The ECB directly supervises the most significant banks, while the national supervisors continue to monitor the remaining banks. The ECB and the national supervisors work closely together to ensure the banks' compliance with EU banking regulations and to be able to address issues early on.

In order to facilitate the timely identification of macroprudential risks to financial stability, the Financial Stability Committee (*Ausschuss für Finanzstabilität*, or "FSC"), which consists of representatives of the Federal Ministry of Finance, the Deutsche Bundesbank and BaFin, was established in March 2013 based on the Financial Stability Act (*Gesetz zur Überwachung der Finanzstabilität, Finanzstabilitätsgesetz*). On basis of the Financial Stability Act and due to its macroeconomic and financial market expertise, the Deutsche Bundesbank is responsible for contributing towards safeguarding financial stability and tasked with analyzing all relevant factors in order to identify threats to financial stability. If appropriate, the Deutsche Bundesbank may propose and submit warnings or recommendations for corrective measures to the FSC, which may pass resolutions with respect thereto and publish them if appropriate. The recipients of such warnings or recommendations are required to report on the implementation of corrective measures. In addition, the FSC is tasked with discussing issues relevant for financial stability, coordinating and strengthening the cooperation of its members during times of crisis, discussing how to deal with warnings or recommendations issued by the European Systemic Risk Board ("ESRB") and reporting to the Bundestag on a yearly basis.

For instance, based on the assessment of the risk situation in Germany as well as the development of supporting indicators, BaFin decided to increase the ratio of the national anticyclical capital buffer to 0.75% from the first quarter of 2022 onwards. The associated requirements for hard equity became applicable as of February 1, 2023. In January 2026, BaFin confirmed that the national anticyclical capital buffer of 0.75% remains appropriate. BaFin decided on April 30, 2025 to lower the sectoral systemic risk buffer for residential mortgage loans from 2 % to 1 % as of May 1, 2025. Vulnerabilities in the German residential real estate market have eased in an orderly manner but have not yet completely dissolved. In light of the changed risk environment, the FSC welcomed the decision of BaFin.

*Sources: Bundesministerium der Justiz, Gesetz über das Kreditwesen (https://www.gesetze-im-internet.de/kredwg/index.html); Federal Financial Supervisory Authority, BaFin, Functions & history (https://www.bafin.de/EN/DieBaFin/AufgabenGeschichte/aufgabengeschichte_node_en.html); Deutsche Bundesbank, Tasks, Banking supervision (https://www.bundesbank.de/en/tasks/banking-supervision); Federal Financial Supervisory Authority, BaFin, Supervisory Guideline — Guideline on carrying out and ensuring the quality of the ongoing monitoring of credit and financial services institutions by the Deutsche Bundesbank, May 21, 2013, revised on December 19, 2016. (https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Aufsichtsrecht/Richtlinie/rl_130521_aufsichtsrichtlinie_en.html); Federal Agency for Financial Market Stabilisation, FMSA (https://www.fmsa.de/en/); Portigon AG: Unternehmensinformationen (https://www.portigon.de/portigon-ag/unternehmensinformationen.html); European Union, EUR-Lex, Single supervisory mechanism (https://eur-lex.europa.eu/EN/legal-content/glossary/single-supervisory-mechanism.html); Deutsche Bundesbank, Tasks, Financial and monetary system, Financial and monetary stability, Macroprudential surveillance by the G-FSC (https://www.bundesbank.de/en/tasks/financial-and-monetary-system/financial-and-monetary-stability/macroprudential-surveillance-g-fsc-/macroprudential-surveillance-by-the-g-fsc-625732); Federal Financial Supervisory Authority, BaFin, Law & Regulation, Allgemeinverfügung zur Anordnung eines Kapitalpuffers für systemische Risiken nach § 10e Kreditwesengesetz published on April 30, 2025 (https://www.bafin.de/SharedDocs/Veroeffentlichungen/DE/Aufsichtsrecht/Verfuegung/vf_250430_allgvfg_kapitalpuffer.html?nn=19659504); Federal Financial Supervisory Authority, BaFin, Companies, Banks & financial services providers, Capital requirements, Countercyclical capital buffer, updated on January 1, 2026 (https://www.bafin.de/EN/Aufsicht/BankenFinanzdienstleister/Eigenmittelanforderungen/Kapitalpuffer/antizyklischer_kapitalpuffer_artikel_en.html),. German Financial Stability Committee welcomes the Federal Financial Supervisory Authority's decision to reduce the sectoral sys-temic risk buffer to 1% (https://www.afs-bund.de/afs/Content/EN/News/FSC-activities/2025/2025-04-30-reduce-sectoral-systemic-risk-buffer.html).*

***Bank Recovery and Resolution***. Between January 1, 2015, and December 31, 2017, the FMSA (see "—Supervision") acted as the German national resolution authority for banks. The FMSA was thus responsible for the recovery and resolution of all banks in Germany under the European Bank Recovery and Resolution Directive ("BRRD"), which were not directly supervised by the ECB within the framework of the SSM (see "—European Financial System—European System of Financial Supervision and European Banking Union"). The BRRD was adopted in May 2014 to provide authorities with comprehensive and effective arrangements to deal with failing banks at the national level and with cooperation arrangements to tackle cross-border banking failures. The BRRD includes rules to set up national resolution funds, which must be established by each EU Member State, and it requires banks to prepare recovery plans to overcome financial distress. Since the establishment of the SRF at the European level in 2016, the contributions raised by the national resolution authorities of participating Member States have in great part been transferred to the SRF pursuant to the intergovernmental agreement on the transfer and mutualisation of contributions to the SRF.

On January 1, 2018, FMSA's duties deriving from its role as the national resolution authority were integrated into BaFin as a new and independently operating division. At the same time, FMSA's responsibilities of administering and managing the Financial Market Stabilization Fund ("*Sondervermögen Finanzmarktstabilisierungsfonds*," or "FMS") were incorporated into the Federal Republic of Germany – Finance Agency (*Bundesrepublik Deutschland – Finanzagentur GmbH*). The FMS was originally created during the financial crisis on October 17, 2008. Until the Single Resolution Mechanism ("SRM") became fully operational on January 1, 2016, and functionally replaced the FMS, the latter was responsible for stabilizing German banks by extending guarantees and injecting capital. All guarantees granted were repaid without any default. Capital measures provided by the FMS amounting to EUR 13.1 billion were still outstanding as of December 31, 2024.

For more information on the SRF and the SRM, see "—European Financial System—European System of Financial Supervision and European Banking Union."

*Sources: Federal Financial Supervisory Authority, Companies, Bank resolution (https://www.bafin.de/EN/Aufsicht/Abwicklung/Aufgaben_NAB_node_en.html); Federal Financial Supervisory Authority, Companies, Banks & financial services providers, Measures, Recovery and resolution (https://www.bafin.de/EN/Aufsicht/BankenFinanzdienstleister/Massnahmen/SanierungAbwicklung/sanierung_abwicklung_node_en.html); European Commission, Banking & insurance, Banking regulation, Bank recovery and resolution (https://finance.ec.europa.eu/banking/banking-regulation/bank-recovery-and-resolution_en); Bundesministerium der Jusitz und für Verbraucherschutz, Verordnung über die Erhebung der Beiträge zum Restrukturierungsfonds für Kreditinstitute (https://www.gesetze-im-internet.de/rstruktfv_2015/index.html#BJNR126800015BJNE000200000); Council of the European Union, Agreement on the Transfer and Mutualisation of Contributions to the Single Resolution Fund (https://data.consilium.europa.eu/doc/document/ST%208457%202014%20INIT/EN/pdf); FSMA – Federal Agency for Financial Market Stabilisation (https://www.fmsa.de/en/); Bundesrepublik Deutschland – Finanzagentur GmbH, FMS, Financial Market Stabilisation Fund (https://www.deutsche-finanzagentur.de/en/stabilisation-measures/financial-market-stabilisation-fund/overview)*

***Wind-up Institutions***. In the wake of the global financial crisis, two wind-up institutions (*Abwicklungsanstalten*) for troubled German banks were established. The first wind-up institution, Erste Abwicklungsanstalt, was established in December 2009 to liquidate a portfolio of EUR 77.5 billion assumed from WestLB. It assumed a second portfolio consisting of an asset portfolio worth EUR 72.3 billion and a trading portfolio with a market value of approximately EUR 52.1 billion following the restructuring of WestLB. As of September 30, 2025, the combined portfolios had been reduced to EUR 8.0 billion.

The second wind-up institution, FMS Wertmanagement, assumed a portfolio of EUR 175.7 billion from Hypo Real Estate Group in October 2010 to support restructuring efforts. In December 2014, FMS Wertmanagement acquired DEPFA Bank plc ("DEPFA"), which, as of December 31, 2013, had consolidated total assets amounting to EUR 49.1 billion from Hypo Real Estate Holding AG. In November 2021, FMS Wertmanagement closed the sale of DEPFA to BAWAG P.S.K. AG. As of December 31, 2025, FMS Wertmanagement's portfolio had a nominal value of EUR 36,6billion.

*Sources: Erste Abwicklungsanstalt, Geschäftsbericht 2025 (https://aa1.de/wp-content/uploads/2026/04/GB-2025_de.pdf); FMS Wertmanagement AöR, Annual Report 2025 (https://www.fms-wm.de/images/GB%20Unterseite/GB%202025/Geschaftsbericht%20FMS-WM%2031.12.2025.pdf.*

***European Financial System***

***European System of Financial Supervision and European Banking Union***. The European system of financial supervision became operational on January 1, 2011. At the macro-financial level, the ESRB was established, which provides macro-prudential oversight of the financial system. The ESRB's role is to monitor and assess potential risks to the stability of the financial system. If necessary, it will issue risk warnings and recommendations for remedial action and will monitor their implementation. The ESRB is chaired by the President of the ECB.

At the micro-financial level, three supervisory authorities were established:

&nbsp;&nbsp;&nbsp;&nbsp;· the European Banking Authority;

&nbsp;&nbsp;&nbsp;&nbsp;· the European Insurance and Occupational Pensions Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;· the European Securities and Markets Authority.

The three European Supervisory Authorities ("ESAs") cooperate with the supervisory authorities of the EU Member States. National authorities are responsible for the day-to-day supervision of individual financial institutions, whereas the ESAs are responsible for ensuring that a single set of harmonized rules and consistent supervisory practices are applied by supervisory authorities of the EU Member States. The ESAs have, for example, the power to settle disputes among national financial supervisors by imposing legally binding mediation and to impose temporary bans on risky financial products or activities.

One of the key elements of the Banking Union, which was established in the wake of the European sovereign debt crisis, is the SSM composed of the ECB and the national supervisory authorities of participating EU Member States, which, as of March 2026, are the Euro Area Member States. The main aims of the SSM, which became operational in November 2014, are to contribute to the safety and soundness of credit institutions and the stability of the European financial system and to ensure consistent supervision. In its role within the SSM, the ECB directly supervises 112 significant banks and banking groups, which represent over 80 % of the total assets on the aggregated balance sheets of all credit institutions under its supervision. For the remaining banks, the ECB is responsible for setting and monitoring the supervisory standards and for working closely with the national competent authorities in the supervision of these banks.

Another key element of the Banking Union is the SRM which was established by a regulation adopted in July 2014 and became fully operational starting January 1, 2016 with the purpose of ensuring the orderly resolution of failing banks. The SRM consists of the Single Resolution Board ("SRB") and the national resolution authorities of participating Member States. The SRB has broad powers in cases of bank resolution and manages the SRF. The SRB is responsible for the planning and resolution phases of failures of cross-border banks and banks directly supervised by the ECB, while national resolution authorities are responsible for all other banks under the BRRD. However, the SRB will always be responsible if the resolution of a bank requires access to the SRF. The SRF was built up over a period of eight years since 2016 and reached its target level of at least 1% of the amount of covered deposits of all credit institutions authorized in all the participating EU Member States at the end of 2023. As of December 31, 2025, the financial means available in the SRF amounted to EUR 81 billion, which are fully mutualized between participating EU Member States. The SRB continues to assess on an annual basis whether the available financial means have diminished below the target level of at least 1% in the relevant contribution period. In such event, further contributions to the SRF may be required. Banks have been making annual contributions to the SRF calculated on the basis of their liabilities, excluding own funds and covered deposits, and adjusted for risk. Companies defined in article 2 paragraph 5 of the EU Capital Requirements Directive IV (CRD IV), including KfW, are not required to contribute to the fund. As part of its pending reform, the ESM would be given the function of a backstop for the SRF. The backstop would be provided through public funds to offer immediate support and confidence to the market and would almost double the size of the SRF. The funds would have to be repaid by all banks of the Banking Union in the following years.

In response to the global economic and financial crisis, regulatory authorities and central banks launched a comprehensive regulatory reform program. As a result, in December 2010, the Basel Committee on Banking Supervision launched a first package, typically referred to as Basel III, of new standards on bank capital adequacy and liquidity to enhance the banking regulatory framework. In order to implement Basel III into EU law, previous EU capital requirement directives were replaced by the Capital Requirements Regulation (CRR), a regulation establishing prudential requirements, and the Capital Requirements Directive IV (CRD IV), a directive governing access to deposit-taking activities, both of which entered into force on January 1, 2014 and have since been gradually implemented in the EU Member States. Further measures were implemented by changes to CRR and CRD adopted by the European legislators in 2019 as described below. A second reform package was endorsed by the Basel Committee on Banking Supervision in December 2017 to finalize the post-crisis reforms. It aims to reduce excessive variability in the calculation of risk-weighted assets. In October 2021, the European Commission presented legislative proposals for further amendments to the CRR and CRD, and to finalize the implementation of the Basel III regulatory reforms in the EU as described below.

In May 2019, European legislators adopted a package of revised rules aimed at reducing risks in the EU banking sector. Most new rules started to apply in mid-2021. The package comprised two regulations and two directives, relating to bank capital requirements (amendments to CRR (CRR II) and CRD (CRD V)) and the recovery and resolution of banks in difficulty (amendments to BRRD and the Single Resolution Mechanism Regulation (SRMR)) and implemented reforms agreed at the international level following the 2007-2008 financial crisis to strengthen the banking sector and to address outstanding challenges to financial stability. Among the core measures agreed to reduce risk in the banking system, the package enhances the framework for bank resolution. It requires global-systemically important institutions (G-SIIs) to have more loss-absorbing and recapitalization capacity by setting the minimum requirements with respect to the amount and quality of own funds and eligible liabilities (MREL) to ensure an effective and orderly "bail-in" process. It also provides provisional safeguards and possible additional actions for resolution authorities. Additionally, the package strengthens bank capital requirements to reduce incentives for excessive risk taking, by including a binding leverage ratio, a binding net stable funding ratio, and setting risk sensitive rules for trading in securities and derivatives.

In December 2023, the final elements for the implementation of Basel III in the EU were agreed by the Council and Parliament. The amended CRR rules (CRR III) and the provisions of the renewed CRD (CRD VI) entered into force on in 2024. One of the main elements of the banking package is the introduction of the output floor, which works as a lower limit on the capital requirements that banks calculate when using their internal models and aims to reduce the excessive variability of banks' capital requirements, as calculated with internal models. The legislative package also implements the Basel standard in relation to credit risks, market risks and operational risks, while taking into account specific features of the EU banking sector. Furthermore, the amendment strengthens the provisions related to environmental, social and governance risks as well as the rules applicable to the suitability of bank managers and key function holders (ie., the fit and proper assessment). While most of the Basel III requirements set out in the amended CRR and CRD became applicable from January 1, 2025, the European Commission has, by means of a delegated act, postponed the application of the market risk rules under the Fundamental Review of the Trading Book until January 1, 2027. This decision was justified by delays or deviations in the Basel III implementation by other major global jurisdictions.

*Sources: European Commission, Regulation, Supervision, European system of financial supervision (https://finance.ec.europa.eu/regulation-and-supervision/european-system-financial-supervision_en); European Central Bank, About, European System of Financial Supervision (https://www.bankingsupervision.europa.eu/about/esfs/html/index.en.html); Federal Financial Supervisory Authority, European Supervision, Microprudential Supervision (https://www.bafin.de/EN/Internationales/EuropaeischeAufsicht/Mikro/mikro-aufsicht_node_en.html;jsessionid=0B170CB0AAF147A286FA5A3057404506.internet971);European Commission, Banking & insurance, Banking Union (https://finance.ec.europa.eu/banking/banking-union_en); European Council, Council of the European Union, Policies, Banking Union (https://www.consilium.europa.eu/en/policies/banking-union/); European Central Bank, ECB assumes responsibility for euro area banking supervision, press release of November 4, 2014 (https://www.ecb.europa.eu/press/pr/date/2014/html/pr141104.en.html); European Central Bank, About, Single Supervisory Mechanism (https://www.bankingsupervision.europa.eu/about/thessm/html/index.en.html); European Central Bank - Banking Supervision, List of supervised entities (https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.listofsupervisedentities202602.en.pdf?ff15bbcb3c1ce8605c4f52f5cf24d5ac); Single Resolution Board, About, The SRB in the Banking Union, Single Resolution Mechanism (https://www.srb.europa.eu/en/content/single-resolution-mechanism-srm); European Commission, Single Resolution Mechanism to come into effect for the Banking Union, press release of December 31, 2015 (https://ec.europa.eu/commission/presscorner/detail/en/IP_15_6397); Single Resolution Board, Resolution, What is a bank resolution?, Banks under the SRB's remit (https://www.srb.europa.eu/en/content/banks-under-srbs-remit); Single Resolution Board, The Single Resolution Fund (https://www.srb.europa.eu/en/single-resolution-fund); Single Resolution Board, News and Media, For the third year, the SRB will not impose Single Resolution Fund levies , press release of February 13, 2026 (https://www.srb.europa.eu/en/content/third-year-srb-will-not-impose-single-resolution-fund-levies); Bundesministerium der Justiz, Gesetz zur Errichtung eines Restrukturierungsfonds für Kreditinstitute (https://www.gesetze-im-internet.de/rstruktfg/); European Stability Mechanism, About us, ESM Reform (https://www.esm.europa.eu/about-esm/esm-reform); European Banking Authority, Activities, Implementing Basel III in Europe, The Basel framework: the global regulatory standards for banks (https://www.eba.europa.eu/activities/basel-framework-global-regulatory-standards-banks); Bank for International Settlements, Committees & associations, Basel Committee on Banking Supervision, Basel III: Finalising Post-Crisis Reforms (https://www.bis.org/bcbs/publ/d424.htm); European Council, Council of the European Union, Banking Union: Council adopts measures to reduce risk in the banking system, press release of May 14, 2019 (https://www.consilium.europa.eu/en/press/press-releases/2019/05/14/banking-union-council-adopts-measures-to-reduce-risk-in-the-banking-system/); European Commission, Banking Package 2021: new EU rules to strengthen banks' resilience and better prepare for the future, press release of October 27, 2021 (https://ec.europa.eu/commission/presscorner/api/files/document/print/en/ip_21_5401/IP_21_5401_EN.pdf); European Commission, Latest updates on the banking package, supplementary information of December 14, 2023 (https://finance.ec.europa.eu/news/latest-updates-banking-package-2023-12-14_en);; European Council, Council of the European Union, Basel III reforms: new EU rules to increase banks' resilience to economic shocks, press release of May 30, 2025 (https://www.consilium.europa.eu/en/press/press-releases/2024/05/30/basel-iii-reforms-new-eu-rules-to-increase-banks-resilience-to-economic-shocks/); European Commission, Commission seeks input on Basel III market risk rules for banks, News Article of November 6, 2025 (https://finance.ec.europa.eu/news/commission-seeks-input-basel-iii-market-risk-rules-banks-2025-11-06_en).*

**Securities Market**

The Federal Republic's securities market is among Europe's largest. Trading in listed securities is not legally or otherwise confined to the stock exchanges. It is estimated, however, that most transactions in equity securities are executed through stock exchanges. By contrast, debt securities, although typically listed, are predominantly traded over-the-counter.

Highly developed secondary markets, combined with the distribution capabilities of an extensive network of financial institutions, provide the basis for the Federal Republic's position in the world's capital markets. Equity and debt issues are generally underwritten and distributed through banking syndicates, which typically include commercial banks as well as certain regional and specialized institutions. In Germany, the regulated securities markets are situated in Berlin, Dusseldorf, Frankfurt am Main, Hamburg, Hanover, Munich and Stuttgart. Additional regulated financial markets include the European Energy Exchange in Leipzig, an energy and energy-related commodities exchange, and the Eurex Terminbörse in Frankfurt am Main, a derivatives exchange market. All of the above are recognized as regulated markets of the EU according to Article 56 of Directive 2014/65/EU on Markets in Financial Instruments and comply with globally accepted regulatory standards.

Based on total turnover on German securities exchanges, the Frankfurt Stock Exchange, operated by Deutsche Börse AG, is by far the most important stock exchange in the Federal Republic.

*Sources: European Union, Directive 2014/65/EU of May 15, 2014 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0065); European Securities and Markets Authority, MiFID/UCITS/AIFMD/EUSEF/EUVECA/ECSPR entities (https://registers.esma.europa.eu/publication/searchRegister?core=esma_registers_upreg); Deutsche Börse Group, Markets & Services, Trading, Frankfurt Stock Exchange, The Frankfurt Stock Exchange (https://www.deutsche-boerse.com/dbg-en/markets-services/trading/frankfurt-stock-exchange/management-board).*

**PUBLIC FINANCE**

**Receipts and Expenditures**

The Federal Government, each of the Länder governments and each of the municipalities (Gemeinden) have separate budgets. The federal budget is the largest single public budget.

The fiscal year of the Federal Republic is the calendar year. The annual federal budget is passed by an act of Parliament. On the basis of a proposal prepared by the Ministry of Finance, the Federal Government introduces the federal budget bill to the Parliament, generally in the summer of each year. The proposal has to pass through three Bundestag sessions, the budget committee of the Bundestag, and the Bundesrat, which deliberates on the proposal twice. The final vote on the proposal is taken by the Bundestag in its third session.

In addition to the federal, Länder and municipal budgets, there are separate budgets for the social security funds and various special funds (*Sondervermögen*) of the federal administration and the Länder, as well as other extra-budgetary entities at all levels of government that are created for specific public purposes. General government, as defined in the national accounts, comprises all these different levels of government activity.

Total consolidated general government revenue, as presented in the national accounts, amounted to EUR 2,140.2 billion in 2025, with tax revenue of EUR 1,031.543 billion and net social contributions of EUR 822.9 billion.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (February 2026), Table 3.4.3.2.*

In 2025, VAT and the taxes on income and wealth, as presented in the national accounts, amounted to EUR 310.6 billion and EUR 571.4 billion, respectively. These joint taxes are distributed among the Federal Government, the Länder governments and municipal authorities, according to predetermined formulae. In addition to joint taxes, the Federal Government, the Länder governments and the municipal authorities each levy special taxes, for example, on tobacco and beer.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (February 2026), Table 3.4.3.16.*

Consolidated general government expenditure in 2025, as presented in the national accounts, amounted to a total of EUR 2,259.3 billion. The most significant consolidated general government expenditures were monetary social benefits (EUR 749.5 billion), social benefits in kind (EUR 414.9 billion) and employee compensation (EUR 384.3 billion). Other significant consolidated general government expenditures included intermediate consumption (EUR 289.1 billion), gross capital formation (EUR 144.8 billion), subsidies (EUR 53.9 billion) and interest on public debt (EUR 49.5 billion).

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2025 (February 2026), Table 3.4.3.2.*

General Government Accounts (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| Federal Government, Länder governments and municipalities |  |  |  |  |  |
| Revenue | 1355.8 | 1305.5 | 1253.1 | 1239.9 | 1155.7 |
| of which: Current taxes (2) | *1.031.5* | 996.6 | 962.0 | 965.4 | 896.7 |
| Expenditure | 1473.2 | 1409.0 | 1367.1 | 1324.8 | 1274.7 |
| **Balance** | **-117.4** | **-103.5** | **-114.0** | **-84.9** | **-119.1** |
| Social security funds |  |  |  |  |  |
| Revenue | 936.0 | 865.6 | 827.9 | 812.4 | 781.7 |
| Expenditure | 937.7 | 877.5 | 819.1 | 803.6 | 779.3 |
| **Balance** | **-1.7** | **-11.8** | **8.8** | **8.8** | **2.4** |
| General government |  |  |  |  |  |
| Revenue | 2140.2 | 2024.4 | 1926.2 | 1863.1 | 1749.2 |
| Expenditure | 2259.3 | 2139.7 | 2031.4 | 1939.2 | 1865.8 |
| **Balance** | **-119.1** | **-115.3** | **-105.2** | **-76.1** | **-116.6** |

---

(1) Definition according to the national accounts.

(2) Excluding taxes of domestic sectors paid to EU.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 - 2025 (March 2026), Tables 3.4.3.2, 3.4.3.3 and 3.4.3.7.*

Federal Government Accounts (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| Revenue | 593.0 | 580.3 | 551.0 | 534.2 | 505.7 |
| of which: Current taxes (2) | 485.7 | 471.5 | 450.9 | 449.0 | 422.3 |
| Expenditure | 672.5 | 641.2 | 643.7 | 645.3 | 637.8 |
| **Balance** | **-79.6** | **-60.9** | **-92.7** | **-111.2** | **-132.1** |

---

(1) Definition according to the national accounts.

(2) Excluding taxes of domestic sectors paid to EU.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 - 2025 (March 2026), Table 3.4.3.4.*

General Government Expenditure: Breakdown by Functions (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| General public services | 284.0 | 277.9 | 256.3 | 232.9 | 219.5 |
| Defense | 68.8 | 58.6 | 52.7 | 46.1 | 41.9 |
| Public order and safety | 74.4 | 70.7 | 67.8 | 63.0 | 60.8 |
| Economic affairs | 248.0 | 234.6 | 246.6 | 223.2 | 240.4 |
| Environmental protection | 24.6 | 24.5 | 23.2 | 20.5 | 20.0 |
| Housing and community amenities | 20.5 | 20.5 | 18.3 | 18.8 | 15.4 |
| Health | 354.4 | 329.3 | 312.2 | 329.2 | 313.3 |
| Recreation, culture and religion | 47.1 | 46.0 | 42.1 | 39.8 | 37.4 |
| Education | 207.3 | 194.6 | 187.9 | 174.0 | 163.7 |
| Social protection | 930.4 | 883.2 | 824.4 | 791.8 | 753.4 |
| **Total expenditure** | **2259.3** | **2139.7** | **2031.4** | **1939.2** | **1865.8** |

---

(1) Definition according to the national accounts.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 - 2025 (March 2026), Table 3.4.3.11.*

**Germany's General Government Deficit/Surplus and General Government Gross Debt**

Germany's General Government Deficit/Surplus and General Government Gross Debt

For purposes of the EU Member States' reports to the European Commission under the EDP, the general government or "Maastricht" deficit/surplus refers to the difference between consolidated public sector revenue and consolidated public sector expenditure and is the balancing item "net borrowing/net lending" of the general government (central government, state government, local government and social security funds) as defined in ESA 2010. After seven annual surpluses in a row, the German general government budget balance turned negative in 2020 due to the impact of the COVID-19 pandemic. Following a general government deficit of 4.4% in 2020, 3.2% in 2021, 1.9% in 2022, 2.5% in 2023, 2.7% in 2024, the German general government deficit amounted to EUR 119.1 billion or again 2.7% of nominal GDP in 2025, which, for the fourth year in a row, was below the EU's 3% reference value for the general government deficit. The German general government gross debt-to-GDP ratio increased from 62.2% in 2024 to 63.5 in 2025, which is above the EU's respective reference value of 60%.

On March 23, 2020, the respective Ministers of Finance of the EU Member States agreed with the assessment of the European Commission that the condition for the use of the general escape clause under the SGP – a severe economic downturn in the euro area or the EU as a whole – had been fulfilled. The activated general escape clause allowed Germany and the other EU Member States to depart from the budgetary requirements that would normally apply under the European fiscal framework to tackle the economic consequences of the COVID-19 pandemic. The general escape clause continued to apply in 2023, against the backdrop of the economic consequences of Russia's invasion of Ukraine but was deactivated at the end of 2023 in line with the fiscal policy guidance for 2024 published by the European Commission on March 8, 2023.

*Sources: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Table 1.10; EUR-lex, Consolidated Version of the Treaty on the Functioning of the European Union (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02016E/TXT-20200301&from=EN); Deutsche Bundesbank, General government debt as defined in the Maastricht Treaty as a % of GDP - Germany – overall (https://www.bundesbank.de/dynamic/action/en/statistics/time-series-databases/time-series-databases/745582/745582?tsId=BBGFS1.A.BJ9959&listId=www_v27_web011_21a&dateSelect=2023); European Council, Council of the European Union, Statement of EU ministers of finance on the Stability and Growth Pact in light of the COVID-19 crisis, press release of March 23, 2020 (https://www.consilium.europa.eu/en/press/press-releases/2020/03/23/statement-of-eu-ministers-of-finance-on-the-stability-and-growth-pact-in-light-of-the-covid-19-crisis/); European Commission, Fiscal policy guidance for 2024: Promoting debt sustainability and sustainable and inclusive growth, press release of March 8, 2023 (https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1410); Deutsche Bundesbank, German general government debt up in 2025 by €144 billion to €2.8 trillion; debt ratio up from 62.2% to 63%, press release of March 31, 2026 (https://www.bundesbank.de/en/press/press-releases/deutsche-staatsschulden-992720).*

On March 19, 2025 the European Commission published a White Paper for European Defense and the ReArm Europe Plan/Readiness 2030, a package designed to increase Europe's own defense capabilities rapidly and substantially against the backdrop of the changed security situation in Europe. Among other things, the European Commission invites EU Member States to activate the national escape clause of the SGP with respect to additional defense expenditure of up to 1.5% of GDP each year for a period of four years. The activation of the national escape clause allows Germany and the other EU Member States to increase their defense expenditure accordingly without triggering an EDP. On April 30, 2025 the European Commission confirmed that Germany is among the EU Member States that have submitted a request to activate the national escape clause (NEC). The NEC was finally activated on October 10, 2025 by the Council of the EU. For further information, see also "General—The European Union and European Integration—EU Economic Governance—Stability and Growth Pact."

*Source: European Commission, Commission unveils the White Paper for European Defence and the ReArm Europe Plan/Readiness 2030, press release of March 19, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_793); European Commission, 12 Member States request activation of the national escape clause in a coordinated move to boost defense spending, press release of April 30, 2025 (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1121); Council of the EU, Economic governance: Council approves Germany's fiscal expenditure path and its flexibility to increase defence spending, press release of October 10, 2025 (https://www.consilium.europa.eu/en/press/press-releases/2025/10/10/economic-governance-council-approves-germany-s-fiscal-expenditure-path-and-its-flexibility-to-increase-defence-spending/)*

The following table shows historical information on the Federal Republic's general government deficit/surplus and debt as a percentage of GDP.

The Federal Republic's Fiscal Maastricht Criteria

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (% of GDP) | (% of GDP) | (% of GDP) | (% of GDP) | (% of GDP) |
| General government deficit (-) / surplus (+) | -2.7 | -2.7 | -2.5 | -1.9 | -3.2 |
| General government gross debt | 63.5 | 62.2 | 62.3 | 64.4 | 67.9 |

---

*Sources: Statistisches Bundesamt, Fachserie 18, Reihe 1.2 – 4. Vierteljahr 2025 (February 2026), Table 1.10; Deutsche Bundesbank, Time series BBK01.BJ9959: General government debt as defined in the Maastricht Treaty as a % of GDP - Germany - overall (https://www.bundesbank.de/dynamic/action/en/statistics/time-series-databases/time-series-databases/745582/745582?tsId=BBGFS1.A.BJ9959&listId=www_v27_web011_21a&dateSelect=2023).*

**Germany's constitutional budget rule**

As regards national fiscal rules, the German constitutional budget rule known as the "debt brake" (*Schuldenbremse*) provides for a structural budget deficit of no more than 0.35% of GDP at the federal level and – prior to the reform in March 2025 – structurally balanced Länder budgets. The Bundestag suspended the debt brake for the years 2020, 2021, 2022 and 2023 in order to enable the financing of governmental measures taken in connection with the COVID-19 pandemic and Russia's invasion of Ukraine. For the federal budget for 2024, however, the regular debt ceiling of the debt brake applied again. In response to Russia's invasion of Ukraine, the Federal Government established a Special Fund for the Federal Armed Forces (*Sondervermögen Bundeswehr*) with its own credit authorization of up to EUR 100 billion on a one-off basis in 2022. This one-off credit authorization is exempted from the debt brake. The Special Fund has been used to supplement the defense section of the Federal Budget to achieve the guideline of the NATO of spending at least 2% of GDP each year on defense.

*Sources: Bundesministerium der Finanzen, Fiskalregeln (https://www.bundesfinanzministerium.de/Web/DE/Themen/Oeffentliche_Finanzen/Stabilitaetspolitik/Fiskalregeln/fiskalregeln.html); Bundesministerium der Finanzen, Kompendium zur Schuldenregel des Bundes (Schuldenbremse), February 25, 2022 (https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Oeffentliche_Finanzen/Schuldenbremse/kompendium-zur-schuldenbremse-des-bundes.pdf?__blob=publicationFile&v=1); Bundesministerium der Finanzen, BMF-Monatsbericht September 2021, Abrechnung der grundgesetzlichen Regel zur Begrenzung der Neuverschuldung 2020 (https://www.bundesfinanzministerium.de/Monatsberichte/2021/09/Downloads/monatsbericht-2021-09-deutsch.pdf?__blob=publicationFile&v=1);Bundesministerium der Finanzen, BMF-Monatsbericht September 2022, Abrechnung der grundgesetzlichen Regel zur Begrenzung der Neuverschuldung (Schuldenbremse) 2021 (https://www.bundesfinanzministerium.de/Monatsberichte/2022/09/Downloads/monatsbericht-2022-09-deutsch.pdf?__blob=publicationFile&v=1);Bundesministerium der Finanzen, BMF-Monatsbericht September 2023, Abrechnung der grundgesetzlichen Regel zur Begrenzung der Neuverschuldung (Schuldenbremse) 2022 (https://www.bundesfinanzministerium.de/Monatsberichte/2023/09/Downloads/monatsbericht-2023-09-deutsch.pdf?__blob=publicationFile&v=1); Bundesministerium der Finanzen, BMF-Monatsbericht September 2024, Abrechnung der Schuldenbremse 2023 (https://www.bundesfinanzministerium.de/Monatsberichte/Ausgabe/2024/09/Inhalte/Kapitel-3-Analysen/3-2-abrechnung-der-schuldenbremse-2023.html); Bundesministerium der Finanzen, BMF-Monatsbericht Februar 2024, Sollbericht 2024: Ausgaben und Einnahmen des Bundeshaushalts (https://www.bundesfinanzministerium.de/Monatsberichte/Ausgabe/2024/02/Inhalte/Kapitel-3-Analysen/3-1-sollbericht-2024.html); Bundesministerium der Finanzen, Sondervermögen Bundeswehr: Investitionen in unsere Freiheit, press release of March 16, 2022 (https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2022/03/2022-03-16-sondervermoegen-bundeswehr.html? cms_pk_kwd=16.03.2022_Sonderverm%C3%B6gen+Bundeswehr+Investitionen+in+unsere+Freiheit&cms_pk_campaign=Newsletter-16.03.2022); Deutscher Bundestag, Dokumente, Textarchiv, 2022, Grundgesetzänderung für das Sondervermögen beschlossen (https://www.bundestag.de/dokumente/textarchiv/2022/kw22-de-grundgesetzaenderung-897760); Bundesrat, Bundesrat kompakt – Das Wichtigste zur Sitzung, Ausgewählte Tagesordnungspunkte der 1022. Sitzung am 10.06.2022, Bundeswehrsondervermögen – Mindestlohn – Rente – Pflegebonus, TOP 24A Bundeswehr (https://www.bundesrat.de/DE/plenum/bundesrat-kompakt/22/1022/1022-node.html).*

In view of the changed security situation in Europe and the corresponding need for significantly higher defense expenditure, Germany decided to reform the debt brake. The reform exempts defense-related expenditure (including civil protection, intelligence services, cyber security and support for countries which are attacked in violation of international law) which in total exceeds 1% of GDP from the debt ceiling of the debt brake; allows the Länder to run structural budget deficits of 0.35% of GDP, in line with the debt rules that apply to the Federal Government (instead of the previously-required structurally balanced budgets of the Länder); and establishes the Special Fund for Infrastructure and Climate Neutrality (*Sondervermögen für Infrastruktur und Klimaneutralität*; the "Special Fund")). To finance additional infrastructure investments by the Federal Government and the Länder in key areas such as energy and transport infrastructure and education over 12 years, the Special Fund has its own one-off credit authorization of up to EUR 500 billion, which is exempt from the limits of the debt brake. The resources from the Special Fund can be drawn down only if they are used in addition to the investments in the federal budget. To ensure this, the investment ratio in the federal budget must not fall below an appropriate level. An amount of EUR 100 billion from the Special Fund will be allocated to the Climate and Transformation Fund (KTF), with a further EUR 100 billion being made available to the Länder. The reform of the debt brake was approved by the Bundestag on March 18, 2025 and by the Bundesrat on March 24, 2025, in each case with the majority of at least two thirds, the majority necessary to amend the Grundgesetz. Following publication in the Federal Law Gazette (*Bundesgesetzblatt*), the reform came into force on March 25, 2025.

*Sources: Deutscher Bundestag, 20. Wahlperiode, Gesetzentwurf der Fraktionen der SPD und CDU/CSU, Entwurf eines Gesetzes zur Änderung des Grundgesetzes, Drucksache 20/15096, 10.03.2025 (https://dserver.bundestag.de/btd/20/150/2015096.pdf); Deutscher Bundestag, 20. Wahlperiode, Beschlussempfehlung und Bericht des Haushaltsausschusses (8.Ausschuss) a) zu dem Gesetzentwurf der Fraktionen der SPD und CDU/CSU – Drucksache 20/15096 – Entwurf eines Gesetzes zur Änderung des Grundgesetzes (Artikel 109, 115 und 143h) b) zu dem Gesetzentwurf der Fraktion BÜNDNIS 90/DIE GRÜNEN – Drucksache 20/15098 – Entwurf eines Gesetzes zur Änderung des Grundgesetzes (Artikel 109 und 115) c) zu dem Gesetzentwurf der Fraktion der FDP – Drucksache 20/15099 – Entwurf eines Gesetzes zur Errichtung eines Verteidigungsfonds für Deutschland und zur Änderung des Grundgesetzes (Artikel 87a), Drucksache 20/15117, 16.03.2025 (https://dserver.bundestag.de/btd/20/151/2015117.pdf); Deutscher Bundestag, Haushalt, Mehrheit für Reform der Schuldenbremse: 512 Abgeordnete stimmen mit Ja (https://www.bundestag.de/dokumente/textarchiv/2025/kw12-de-sondersitzung-1056916); Bundesrat, Bundesrat KOMPAKT Das Wichtigste zur Sitzung, Ausgewählte Tagesordnungspunkte der 1052. Sitzung am 21.03.2025, Bundesrat macht Weg frei für Sondervermögen und Lockerung der Schuldenbremse (https://www.bundesrat.de/DE/plenum/bundesrat-kompakt/25/1052/1052-pk.html); Bundesgesetzblatt, Gesetz zur Änderung des Grundgesetzes (Artikel 109, 115 und 143h), BGBl. 2025 / Nr. 94 vom 24.03.2025 (https://www.recht.bund.de/bgbl/1/2025/94/VO.html); Bundesministerium der Finanzen, Das Sondervermögen für Infrastruktur und Klimaneutralität (https://www.bundesfinanzministerium.de/Web/DE/Themen/Oeffentliche_Finanzen/SVIK/sondervermoegen-infrastruktur-klimaneutralitaet.html).*

**Fiscal Outlook**

Based on the reformed rules of the SGP, which came into force in 2024, the EU Member States must present a general government net expenditure path for the coming years in so-called medium-term fiscal-structural plans ("MTPs"). These MTPs are assessed by the European Commission. Once the MTPs have been adopted by the Council, the net expenditure path is considered a binding fiscal commitment, which is used to monitor compliance with the fiscal requirements of the reformed SGP. On July 16, 2025, the federal cabinet adopted the German medium-term fiscal-structural plan for the years from 2025 to 2029. This is Germany's first medium-term fiscal-structural plan. It includes a fiscal commitment for the years from 2025 to 2029 that is expressed in terms of a net expenditure path, that is, maximum permissible growth rates for net nationally financed primary expenditure. On October 10, 2025, the Council of the EU approved Germany's fiscal expenditure path.

*Source: Federal Ministry of Finance, German Medium-Term Fiscal-Structural Plan (https://www.bundesfinanzministerium.de/Content/EN/Standardartikel/Press_Room/Publications/Brochures/medium-term-fiscal-structural-plan.html), Council of the EU, Economic governance: Council approves Germany's fiscal expenditure path and its flexibility to increase defense spending, press release of October 10, 2025 (https://www.consilium.europa.eu/en/press/press-releases/2025/10/10/economic-governance-council-approves-germany-s-fiscal-expenditure-path-and-its-flexibility-to-increase-defence-spending/).*

The following table presents the European Commission's projection for key fiscal indicators in the years 2026 and 2027, as set out in the European Commission's Autumn Forecast 2024, compared to the results for these key fiscal indicators in the years 2023 to 2025. The Autumn Forecast was published in November 2025.

General Government Budgetary Prospects (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2027 | 2026 | 2025 | 2024 | 2023 |
|  | (% of GDP) | (% of GDP) | (% of GDP) | (% of GDP) | (% of GDP) |
| Revenue | 47.7 | 47.4 | 47.9 | 46.8 | 45.7 |
| Expenditure | 51.5 | 51.4 | 50.5 | 49.4 | 48.1 |
| **General government deficit (-) / surplus (+)** | **-3.8** | **-4.0** | **-2.7** | **-2.7** | **-2.5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expenditure | 1.2 | 1.2 | 1.1 | 1.1 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Primary balance (2) | -2.6 | -2.8 | -1.6 | -1.6 | -1.6 |
| **General government gross debt** | **67.0** | **65.2** | **63.5** | **62.2** | **62.3** |

---

(1) Figures may not add up due to rounding.

(2) General government deficit (-) / surplus (+) excluding interest expenditure.

*Source: European Commission, European Economic Forecast, Autumn 2025 (https://economy-finance.ec.europa.eu/mwg-internal/de5fs23hu73ds/progress?id=2gLThP61PTnuhCIO6FsSOSHUbocHPzjX2aqXS9ioDH8,&dl), Tables 32-36 and 40; Statistisches Bundesamt, Fachserie 18, Reihe 1.4 – 2024 (March 2025), Tables 2.1.12; Deutsche Bundesbank, Time series BBGFS1.A.BK9190; BBGFS1.A.BK9182; BBK01.BJ9959 (https://www.bundesbank.de/dynamic/action/en/statistics/time-series-databases/time-series-databases/743796/743796?openNodeId=1749498&treeAnchor=FINANZEN).*

**Tax Structure**

***Income Tax***

Significant sources of revenue for the general government are the various types of income taxes. Income taxation for employees and self-employed persons is based on a progressive tax scale with marginal tax rates ranging from 14% to 45% subject to the amount of taxable income. Employees pay taxes on their income from employment in the form of wage taxes. Self-employed persons typically pay estimated taxes during the year before filing their annual income tax return. Income generated by partnerships (*Personengesellschaften*) is not subject to tax at the partnership level, but at the level of the partners. The partners pay tax on this income according to their individual income tax brackets.

Income generated by corporations is subject to corporate income tax (*Körperschaftsteuer*) at a flat rate of 15%.

Capital income received by domestic taxpayers (all types of income from capital as well as private shareholders' net gains from sales of shares in corporations) is subject to a final uniform tax rate of 25% (*Abgeltungsteuer*), taking into consideration an allowance (*Sparerpauschbetrag*) of EUR 1,000 (EUR 2,000 for married couples).

In addition to the various types of income tax, a solidarity surcharge of 5.5% is imposed on the applicable income tax liability. From January 1, 2021, onwards, the additional tax burden resulting from the solidarity surcharge has been abolished for approximately 90% of income taxpayers for the benefit of low and middle incomes.

*Sources: Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Einkommensteuergesetz (https://www.gesetze-im-internet.de/estg/index.html); Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Körperschaftsteuergesetz (https://www.gesetze-im-internet.de/kstg_1977/index.html); Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Solidaritätszuschlaggesetz 1995, § 4 Zuschlagssatz (https://www.gesetze-im-internet.de/solzg_1995/__4.html); Bundesministerium der Finanzen, Monatsbericht Januar 2024, Analysen und Berichte, Die wichtigsten steuerlichen Änderungen 2024 (https://www.bundesfinanzministerium.de/Monatsberichte/Ausgabe/2024/01/Inhalte/Kapitel-3-Analysen/3-1-wichtigste-steuerliche-aenderungen-2024.html).*

***VAT and Consumption Taxes***

VAT serves as a significant source of revenue. VAT is a general consumption tax that is imposed on the value of most goods and services. The standard rate applicable to most goods and services is 19%. Certain items that are classified as necessities, such as food (except food and beverages in restaurants) and books, are subject to a reduced rate of 7%.

Against the backdrop of Russia's invasion of Ukraine and rising energy prices, the VAT rate for the supply of gas via the natural gas grid and district heating was temporarily reduced from 19% to 7% from October 1, 2022 until March 31, 2024. Similarly, initially in connection with the COVID-19 pandemic, the VAT rate for restaurant and catering services was temporarily reduced from 19% to 7% from July 1, 2020 until December 31, 2023. The reduced VAT rate for restaurant and catering services, but excluding beverages, was re-introduced on January 1, 2026.

In addition to the VAT, there are specific consumption taxes. The most significant specific consumption taxes relate to energy and tobacco.

*Sources: Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Umsatzsteuergesetz (https://www.gesetze-im-internet.de/ustg_1980/index.html); Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Umsatzsteuergesetz, § 12 Steuersätze (https://www.gesetze-im-internet.de/ustg_1980/__12.html); Die Bundesregierung, Im Bundesrat beschlossen – Umsatzsteuer auf Gas wird reduziert, published on October 26, 2022 (https://www.bundesregierung.de/breg-de/aktuelles/steuersenkung-gas-2125486); Bundesministerium der Justiz, Energiesteuergesetz (https://www.gesetze-im-internet.de/energiestg/); Bundesministerium der Justiz, Tabaksteuergesetz (https://www.gesetze-im-internet.de/tabstg_2009/index.html); Bundesministerium der Finanzen, Die wichtigsten steuerlichen Änderungen 2026 (https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/das-aendert-sich-2026.html).*

***Energy Taxation and Emissions Trading***

In addition to its primary purpose of revenue generation, the energy tax regime also aims to encourage energy conservation and to mitigate climate change by providing incentives for a reduction of carbon emissions. Furthermore, it aims to allocate the burden of taxes and contributions more equally among labor, capital and natural resources. Key points of this tax regime are an electricity tax and a energy tax on motor fuels and heating fuels. The electricity tax rate is EUR 20.50 per megawatt-hour. The energy tax rates vary depending on the specific energy product, e.g., 654.50 EUR/1000 l for petrol containing sulfur at a maximum of 10 mg/kg and 470.40 EUR/1000 l for diesel fuel containing sulfur at a maximum of 10 mg/kg.

In addition to the EU's Emissions Trading System (ETS) for carbon emissions applied to the manufacturing and energy industries, Germany has introduced a national ETS for carbon emissions of the transportation and buildings sector from 2021 onwards, starting with a price on carbon emissions initially set at EUR 25 per ton in 2021, EUR 30 per ton in 2022 and rising incrementally thereafter. However, following Russia's invasion of Ukraine and its impact on energy prices for households and companies, the projected price increase on carbon emissions was temporarily adjusted to EUR 30 per ton in 2023 for one year (EUR 5 less per ton than previously planned) but then returned to the originally planned price path from 2024 onwards. In 2026, allowances will be auctioned within a price range of EUR 55 (minimum) to EUR 65 (maximum) per ton of carbon emissions. From 2028 on, the price of CO<sub>2</sub> will be determined by market forces in the emissions certificates market under the European emissions trading system. with certificates being auctioned off to fuel sellers.

*Sources: Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Stromsteuergesetz (https://www.gesetze-im-internet.de/stromstg/index.html); Bundesministerium der Justiz, Stromsteuergesetz, § 3 Steuertarif (https://www.gesetze-im-internet.de/stromstg/__3.html); Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Energiesteuergesetz (https://www.gesetze-im-internet.de/energiestg/), Bundesministerium der Justiz und für Verbraucherschutz, Bundesamt für Justiz, Energiesteuergesetz, § 2 Steuertarif (https://www.gesetze-im-internet.de/energiestg/__2.html), The Federal Government, Effectively reducing CO2 emissions (https://www.bundesregierung.de/breg-en/issues/climate-action/effectively-reducing-co2-1795850); Federal Ministry for Economic Affairs and Climate Action, Robert Habeck: "We are taking a more cautious approach to carbon pricing, reducing the burden on households and companies" – 2023 increase in carbon price postponed, press release of October 28, 2022 (https://www.bmwk.de/Redaktion/EN/Pressemitteilungen/2022/10/20221028-robert-habeck-we-are-taking-a-more-cautious-approach-to-carbon-pricing-reducing-the-burden-on-households-and-companies.html); Die Bundesregierung, Der Klima und Transformationsfonds 2024 – Entlastung schaffen, Zukunftsinvestitionen sichern, Transformation gestalten, December 22, 2023 (https://www.bundesregierung.de/breg-de/aktuelles/der-klima-und-transformationsfonds-2024-2250738), Bundesministerium für Wirtschaft und Energie, Energie, Der CO2 Preis: Wichtiger Beitrag zum Klimaschutz (https://www.energiewechsel.de/KAENEF/Redaktion/DE/Dossier/co2-preis.html); European Commission, ETS2 Buildings, road transport and additional sectors (https://climate.ec.europa.eu/eu-action/carbon-markets/ets2-buildings-road-transport-and-additional-sectors_en#:~:text=The%20ETS2%20will%20become%20fully,monitor%20and%20report%20their%20emissions).*

***Trade Tax***

Trade tax (*Gewerbesteuer*) is levied at the municipal level and is imposed on businesses and their objective earning power. The trade tax rate varies and depends on the municipality that levies the tax. Basis of assessment are the profits of a business enterprise as determined under income tax law or corporation tax law, increased or decreased by certain adjustments. The result is multiplied by the basic federal rate (*Gewerbesteuermesszahl*) to achieve the base amount for the trade tax (*Steuermessbetrag*), which is then multiplied by the municipal multiplier (*Hebesatz*). Beyond a required minimum level of 200% for the municipal multiplier, municipalities have discretion to fix the municipal tax collection rate. Based on a weighted average municipal multiplier of 406.67% in 2023 the average trade tax rate in 2023 amounted to 14.23%.

*Sources: Bundesministerium der Justiz und für Verbraucherschutz, Gewerbesteuergesetz (https://www.gesetze-im-internet.de/gewstg/index.html); Bundesministerium der Finanzen, Die wichtigsten Steuern im internationalen Vergleich 2024, Ausgabe 2025, Übersicht 4, page 14 (https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/steuern-im-internationalen-vergleich-2024.pdf?__blob=publicationFile&v=8).*

The following table provides an overview of the annual tax revenues of the general government divided by categories for each of the years indicated, as presented in the national accounts.

Taxes (1)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 |
|  | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) | (EUR in billions) |
| Current taxes | 1031.5 | 996.6 | 962.0 | 965.4 | 896.7 |
| &nbsp;&nbsp;&nbsp;Taxes on production and imports | 460.1 | 443.8 | 428.7 | 434.3 | 410.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which: VAT | 310.6 | 298.8 | 291.5 | 292.2 | 260.3 |
| &nbsp;&nbsp;&nbsp;Current taxes on income and wealth | 571.4 | 552.8 | 533.3 | 531.1 | 486.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which: Wage tax | 302.6 | 287.3 | 274.7 | 273.9 | 257.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assessed income tax | 75.1 | 71.5 | 70.2 | 79.2 | 68.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-assessed taxes on earnings | 58.5 | 58.1 | 49.1 | 41.2 | 39.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate tax | 42.9 | 44.6 | 48.5 | 49.8 | 44.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade tax (Gewerbesteuer) | 76.2 | 75.3 | 75.0 | 71.0 | 61.1 |
| Capital taxes | 15.4 | 10.0 | 9.3 | 9.2 | 9.8 |
| **Tax revenue of general government** | **1047.0** | **1006.6** | **971.3** | **974.6** | **906.5** |
| Taxes of domestic sectors to EU | 5.9 | 5.6 | 5.6 | 6.7 | 5.3 |
| **Taxes** | **1052.9** | **1012.2** | **977.0** | **981.3** | **911.8** |

---

(1) Definition according to the national accounts.

*Source: Statistisches Bundesamt, Fachserie 18, Reihe 1.4 - 2025 (March 2026), Table 3.4.3.16.*

**Government Participations**

The Federal Republic and its various special funds held direct participations in 117 public and private enterprises as of December 31, 2024.

The following table shows information on the Federal Republic's significant direct and indirect majority and minority participations (including those held through special funds) as of December 31, 2024.

Participations of the Federal Republic

---

| | | |
|:---|:---|:---|
| Enterprises | Total nominal capital<br> of enterprise | Participation of the<br> Federal Republic |
|  | (EUR in millions) | (%) |
| Significant majority participations: |  |  |
| Deutsche Bahn AG | 2150 | 100.0 |
| KfW Kreditanstalt für Wiederaufbau | 3750 | 80.0 |
| Hypo Real Estate Holding GmbH (1) | 112 | 100.0 |
| Uniper SE (2) | 416 | 99.1 |
| SEFE Securing Energy for Europe GmbH (3) | 226 | 100.0 |
| Significant minority participations exceeding 25%: |  |  |
| Deutsche Telekom AG | 12765 | 27.8 |
| Flughafen München GmbH | 307 | 26.0 |

---

(1) Participations held by a special fund.

(2) Held indirectly through UBG Uniper Beteiligungsholding GmbH.

(3) Held indirectly through SEEHG Securing Energy for Europe Holding GmbH.

*Source: Bundesministerium der Finanzen, Beteiligungsbericht des Bundes 2024 (https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/beteiligungsbericht-des-bundes-2024.pdf?__blob=publicationFile&v=4).*

In December 2022, following approval by the European Commission under EU state aid rules, the Federal Government acquired 99.1% of the share capital of energy company Uniper SE ("Uniper") with the aim of securing the energy supply in Germany. Unless otherwise approved by the European Commission, the Federal Government is obliged to reduce its stake in Uniper to a maximum of 25% plus one share by 2028 at the latest. Uniper provides critical energy infrastructure in Germany and plays a key role in the supply of electricity and natural gas. As a result of Russia's invasion of Ukraine and the subsequent halt in the supply of Russian natural gas to Germany, Uniper faced existential difficulties. Due to Uniper's central role for the energy supply in Germany, the Federal Government decided on initial support measures in July 2022, which were adapted based on further developments in September 2022. In this context, Uniper had already received substantial support from KfW in the form of credit lines. Funds provided by KfW were since substituted by equity and repaid in part. Another company that was transferred to state ownership as a measure to safeguard energy security in Germany is SEFE. The European Commission confirmed these capital measures under state aid rules in December 2022. Specifically, the European Commission authorized the Federal Government to inject EUR 6.3 billion of additional equity into the company by substituting an existing KfW loan subject to certain competition-related conditions.

*Sources: Bundesministerium der Finanzen, Bundesministerium für Wirtschaft und Klimaschutz, Einstieg des Bundes bei Energieversorger Uniper SE vollzogen, joint press release of December 22, 2022 (https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2022/12/2022-12-22-einstieg-bund-bei-uniper-vollzogen.html); Federal Ministry for Economic Affairs and Climate Action, European Commission approves equity capital for reorientation of SEFE, press release of December 20, 2022 (https://www.bmwk.de/Redaktion/EN/Pressemitteilungen/2022/12/20221220-european-commission-approves-equity-capital-for-reorientation-of-sefe.html).*

**Direct Debt of the Federal Government**

As of December 31, 2024, the principal amount of the Federal Government's direct debt totaled EUR 1,828.6 billion . For further information on the principal amount of the outstanding direct debt, see "Tables and Supplementary Information—I. Direct Debt of the Federal Government— Summary of the Principal Amount of the Outstanding Direct Debt of the Federal Government."

The Federal Government raises funds primarily through the issuance of bonds and notes. Euro-denominated bonds and notes issued by the Federal Republic are evidenced by book entry and no certificates are issued.

In addition to its own direct debt obligations, the Federal Government and its special funds had outstanding guarantees in an aggregate amount of EUR 621.5 billion as of December 31, 2024. Of this amount, EUR 111.0 billion were outstanding in the form of export credit insurance, which is handled by HERMES on behalf of and for the account of the Federal Government. Furthermore, EUR 22.4 billion of the aggregate amount were outstanding in the form of a guarantee for a loan to Greece according to the German Financial Stability Act, and EUR 86.8 billion of the aggregate amount were outstanding in the form of a guarantee for the European Stability Mechanism.

*Source: Bundesministerium der Finanzen, Finanzbericht 2026, Übersicht 8.1.3, pages 295-296. (https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/finanzbericht-2026.html).*

For more detailed information regarding the Federal Government's debt and guarantees, see "—Tables and Supplementary Information."

For information on the Federal Government's liability as of December 31, 2025 for capital subscriptions to various international financial organizations, see the table "—Tables and Supplementary Information—III. Liabilities to International Financial Organizations."

**TABLES AND SUPPLEMENTARY INFORMATION**

I. DIRECT DEBT OF THE FEDERAL GOVERNMENT

SUMMARY OF THE PRINCIPAL AMOUNT OF THE OUTSTANDING DIRECT DEBT OF THE FEDERAL GOVERNMENT

Aggregate principal amount outstanding as of December 31, 2025 (EUR in millions)

---

| | |
|:---|:---|
| Federal Bonds *(Bundesanleihen)* | 1311500 |
| Federal Notes *(Bundesobligationen)* | 270500 |
| Federal Treasury Notes *(Bundesschatzanweisungen)* | 146500 |
| Treasury Discount Paper *(Unverzinsliche Schatzanweisungen)* | 96000 |
| Inflation-linked Securities *(Inflationsindexierte Bundeswertpapiere)* | 66250 |
| Green Federal Bonds *(Grüne Bundesanleihen)* | 63000 |
| Green Five-year Federal Notes *(Grüne Bundesobligationen)* | 16250 |
| Borrowers' note loans *(Schuldscheindarlehen)* | 3895 |
| Old debt (1) | 3584 |
| Repurchased debt | -196609 |
| **Total** | **1780870** |

---

(1) Mainly equalization and covering claims of the Deutsche Bundesbank, other banks and insurance companies in connection with the currency
reform of 1948.

*Source: Monthly Report of the Federal Ministry of Finance, January 2026, Table "Entwicklung der Kreditaufnahme des Bundes ohne Darlehensfinanzierung im Dezember 2025", page 62, and table "Entwicklung von Umlaufvolumen und Eigenbestände an Bundeswertpapieren im Dezember 2025", page 64 (https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/Monatsberichte/2026/monatsbericht-2026-01.html).*

Debt tables

1. Federal Bonds (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 6.5% Bonds of the Federal Republic of 1997 | 6.50 | 1997 | 2027 | 13750 |
| 5.625% Bonds of the Federal Republic of 1998 | 5.625 | 1998 | 2028 | 17000 |
| 4.75% Bonds of the Federal Republic of 1998 | 4.75 | 1998 | 2028 | 13750 |
| 6.25% Bonds of the Federal Republic of 2000 | 6.25 | 2000 | 2030 | 11750 |
| 5.5% Bonds of the Federal Republic of 2000 | 5.50 | 2000 | 2031 | 21500 |
| 4.75% Bonds of the Federal Republic of 2003 | 4.75 | 2003 | 2034 | 24500 |
| 4% Bonds of the Federal Republic of 2005 | 4.00 | 2005 | 2037 | 28250 |
| 4.25% Bonds of the Federal Republic of 2007 | 4.25 | 2007 | 2039 | 19250 |
| 4.75% Bonds of the Federal Republic of 2008 | 4.75 | 2008 | 2040 | 23000 |
| 3.25% Bonds of the Federal Republic of 2010 | 3.25 | 2010 | 2042 | 22000 |
| 2.5% Bonds of the Federal Republic of 2012 | 2.50 | 2012 | 2044 | 34500 |
| 2.5% Bonds of the Federal Republic of 2014 | 2.50 | 2014 | 2046 | 36250 |
| 0.5% Bonds of the Federal Republic of 2016 | 0.50 | 2016 | 2026 | 33500 |
| 0% Bonds of the Federal Republic of 2016 | 0.00 | 2016 | 2026 | 32500 |
| 0.25% Bonds of the Federal Republic of 2017 | 0.25 | 2017 | 2027 | 30500 |
| 0.5% Bonds of the Federal Republic of 2017 | 0.50 | 2017 | 2027 | 32500 |
| 1.25% Bonds of the Federal Republic of 2017 | 1.25 | 2017 | 2048 | 41000 |
| 0.5% Bonds of the Federal Republic of 2018 | 0.50 | 2018 | 2028 | 28500 |
| 0.25% Bonds of the Federal Republic of 2018 | 0.25 | 2018 | 2028 | 28500 |
| 0.25% Bonds of the Federal Republic of 2019 | 0.25 | 2019 | 2029 | 29500 |
| 0.00% Bonds of the Federal Republic of 2019 | 0.00 | 2019 | 2029 | 29500 |
| 0.00% Bonds of the Federal Republic of 2019 | 0.00 | 2019 | 2050 | 45500 |
| 0.00% Bonds of the Federal Republic of 2020 | 0.00 | 2020 | 2030 | 28000 |
| 0.00% Bonds of the Federal Republic of 2020 | 0.00 | 2020 | 2035 | 23750 |
| 0.00% Bonds of the Federal Republic of 2020 | 0.00 | 2020 | 2027 | 22000 |
| 0.00% Bonds of the Federal Republic of 2020 | 0.00 | 2020 | 2030 | 33500 |
| 0.00% Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2028 | 27000 |
| 0.00% Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2031 | 28000 |
| 0.00% Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2031 | 32000 |
| 0.00% Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2036 | 27250 |
| 0.00% Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2052 | 34500 |
| 0.00% Bonds of the Federal Republic of 2022 | 0.00 | 2022 | 2032 | 31000 |
| 1.70% Bonds of the Federal Republic of 2022 | 1.70 | 2022 | 2032 | 28000 |
| 1.00% Bonds of the Federal Republic of 2022 | 1.00 | 2022 | 2038 | 31250 |
| 2.10% Bonds of the Federal Republic of 2022 | 2.10 | 2022 | 2029 | 26000 |
| 1.80% Bonds of the Federal Republic of 2022 | 1.80 | 2022 | 2053 | 33500 |
| 2.30% Bonds of the Federal Republic of 2023 | 2.30 | 2023 | 2033 | 38250 |
| 2.60% Bonds of the Federal Republic of 2023 | 2.60 | 2023 | 2033 | 30500 |
| 2.40% Bonds of the Federal Republic of 2023 | 2.40 | 2023 | 2030 | 28000 |
| 2.20% Bonds of the Federal Republic of 2024 | 2.20 | 2024 | 2034 | 35000 |
| 2.50% Bonds of the Federal Republic of 2024 | 2.50 | 2024 | 2054 | 26500 |
| 2.60% Bonds of the Federal Republic of 2024 | 2.60 | 2024 | 2041 | 18000 |
| 2.60% Bonds of the Federal Republic of 2024 | 2.60 | 2024 | 2034 | 35000 |
| 2.50% Bonds of the Federal Republic of 2025 | 2.50 | 2025 | 2035 | 35000 |
| 2.50% Bonds of the Federal Republic of 2025 | 2.50 | 2025 | 2032 | 11000 |
| 2.60% Bonds of the Federal Republic of 2025 | 2.60 | 2025 | 2035 | 33500 |
| 2.90% Bonds of the Federal Republic of 2025 | 2.90 | 2025 | 2056 | 18000 |
| **Total Federal Bonds** |  |  |  | **1311500** |

---

(1) Federal Bonds (*Bundesanleihen*) are evidenced by book entry, and no certificates are issued. Maturities are 7 to 30 years. No
redemption prior to maturity; including principal strips.

2. Green Federal Bonds (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 0.00% Green Bonds of the Federal Republic of 2020 | 0.00 | 2020 | 2030 | 11000 |
| 0.00% Green Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2031 | 9500 |
| 0.00% Green Bonds of the Federal Republic of 2021 | 0.00 | 2021 | 2050 | 12750 |
| 2.30% Green Bonds of the Federal Republic of 2023 | 2.30 | 2023 | 2033 | 12000 |
| 1.80% Green Bonds of the Federal Republic of 2023 | 1.80 | 2023 | 2053 | 12000 |
| 2.50% Green Bonds of the Federal Republic of 2025 | 2.50 | 2025 | 2035 | 5750 |
| **Total Green Federal Bonds** |  |  |  | **63000** |

---

(1) Federal Bonds (*Bundesanleihen*) are evidenced by book entry, and no certificates are issued. Maturities are 7 to 30 years. No
redemption prior to maturity; including principal strips.

3. Inflation-linked Securities (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 0.50% Inflation-linked Bonds of the Federal Republic of 2014 | 0.50 | 2014 | 2030 | 22150 |
| 0.10% Inflation-linked Bonds of the Federal Republic of 2015 | 0.10 | 2015 | 2026 | 19200 |
| 0.10% Inflation-linked Bonds of the Federal Republic of 2015 | 0.10 | 2015 | 2046 | 14250 |
| 0.10% Inflation-linked Bonds of the Federal Republic of 2021 | 0.10 | 2021 | 2033 | 10650 |
| **Total Inflation-linked Securities** |  |  |  | **66250** |

---

(1) Inflation-linked Securities (*Inflationsindexierte Bundeswertpapiere*) are evidenced by book entry, and no certificates are issued.
Maturities are 5 to 30 years. No redemption prior to maturity.

4. Federal Notes (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 0.00% Bonds of 2021-Series 183 | 0.00 | 2021 | 2026 | 28000 |
| 0.00% Bonds of 2021-Series 184 | 0.00 | 2021 | 2026 | 24000 |
| 0.00% Bonds of 2022-Series 185 | 0.00 | 2022 | 2027 | 22000 |
| 1.30% Bonds of 2022-Series 186 | 1.30 | 2022 | 2027 | 30000 |
| 2.20% Bonds of 2023-Series 187 | 2.20 | 2023 | 2028 | 25000 |
| 2.40% Bonds of 2023-Series 188 | 2.40 | 2023 | 2028 | 29500 |
| 2.10% Bonds of 2024-Series 189 | 2.10 | 2024 | 2029 | 25000 |
| 2.50% Bonds of 2024-Series 190 | 2.50 | 2024 | 2029 | 24000 |
| 2.40% Bonds of 2025-Series 191 | 2.40 | 2025 | 2030 | 32000 |
| 2.20% Bonds of 2025-Series 192 | 2.20 | 2025 | 2030 | 31000 |
| **Total Federal Notes** |  |  |  | **270500** |

---

(1) Federal Notes (*Bundesobligationen*) are evidenced by book entry, and no certificates are issued. Maturities are approximately
five years. No redemption prior to maturity.

5. Green Federal Notes (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 1.30% Green Bonds of 2022 | 1.30 | 2022 | 2027 | 9750 |
| 2.10% Green Bonds of 2024 | 2.10 | 2024 | 2029 | 6500 |
| **Total Federal Notes** |  |  |  | **16250** |

---

(1) Federal Notes (*Bundesobligationen*) are evidenced by book entry, and no certificates are issued. Maturities are approximately
five years. No redemption prior to maturity.

6. Federal Treasury Notes (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of <br> December 2025<br> (EUR in millions) |
| 2.50% Notes of 2024 | 2.50 | 2024 | 2026 | 19000 |
| 2.90% Notes of 2024 | 2.90 | 2024 | 2026 | 19000 |
| 2.70% Notes of 2024 | 2.70 | 2024 | 2026 | 19000 |
| 2,00% Notes of 2024 | 2.00 | 2024 | 2026 | 19000 |
| 2.20% Notes of 2025 | 2.20 | 2025 | 2027 | 18500 |
| 1.70% Notes of 2025 | 1.70 | 2025 | 2027 | 18000 |
| 1.90% Notes of 2025 | 1.90 | 2025 | 2027 | 19000 |
| 2.00% Notes of 2025 | 2.00 | 2025 | 2027 | 15000 |
| **Total Federal Treasury Notes** |  |  |  | **146500** |

---

(1) Federal Treasury Notes (*Bundesschatzanweisungen*) are evidenced by book-entry, and no certificates are issued. Maturities are
two years. No redemption prior to maturity.

7. Treasury Discount Paper (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of<br> December 2025<br> (EUR in millions) |
| Treasury Discount Paper | 1.80 to 2.40 | 2025 | 2026 | 96000 |

---

(1) Treasury Discount Papers (*Unverzinsliche Schatzanweisungen*) are issued at a discount and repaid at par value on the maturity
date. No interest payments are made during the term of the paper. The papers are auctioned and intended for institutional investors. Currently,
the initial maturity is twelve months. No redemption is permitted prior to maturity.

(2) Reflects annual interest rate paid to the holder by way of the initial issue discount. No redemption is permitted prior to maturity.

8. Borrowers' Note Loans (1)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of<br> December 2025<br> (EUR in millions) |
| Borrower's note loans (*Schuldscheindarlehen*) | 3.50 to 5.05 | 2003 to 2007 | 2026 to 2037 | 3895 |

---

(1) Borrowers' note loans (*Schuldscheindarlehen*) are an instrument of the German capital market where the lending entity,
generally an institutional investor, receives a certificate evidencing its loan to the borrower and the term of such loans. The certificate
generally authorizes at least three assignments. No redemption is permitted prior to maturity.

*Source for Debt Table 1 to 8: Federal Republic of Germany – Finance Agency, "German Government Securities and Financing Instruments" (https://www.deutsche-finanzagentur.de/fileadmin/user_upload/Institutionelle-investoren/berichtswesen/einzelaufstellung_en.xlsx)).*

9. Other Liabilities

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title | Interest rate <br>(% per annum) | Year of issue | Maturity | Aggregate<br> principal amount<br> outstanding as of<br> December 2025<br> (EUR in millions) |
| Old debt (1) | 0.00 to 3.00 | Various | Various | 3584 |

---

(1) Includes mainly equalization and covering claims of the Deutsche Bundesbank, other banks and insurance companies in connection with
the currency reform of 1948 as well as liabilities of the Federal Government to repay amounts received from the *Investitionshilfeabgabe*,
a special duty levied on income, the proceeds of which were to be used to promote investments.

*Source: Bundesministerium der Finanzen, Monatsbericht Januar 2026, Table "Entwicklung der Kreditaufnahme des Bundes (Haushalt und Sondervermögen ohne Darlehensfinanzierung) im Dezember 2025", page 62 (https://www.bundesfinanzministerium.de/Monatsberichte/Ausgabe/2026/01/Inhalte/Kapitel-3-Wirtschafts-und-Finanzlage/3-4-kreditaufnahme-des-bundes.html - doc514026bodyText2).*

II. Guarantees by the Federal Government (1)

---

| | | |
|:---|:---|:---|
| Purpose of Guarantees | Aggregate principal amount<br> outstanding as of December, 31 | Aggregate principal amount<br> outstanding as of December, 31 |
|  | 2024 | 2023 |
|  | (EUR in millions) | (EUR in millions) |
| Export finance loans (including rescheduled loans) (2) | 111034 | 113080 |
| Untied loans; direct foreign investments by German companies; Loans of the European Investment Bank to non-EU borrowers | 38988 | 39757 |
| Loans in connection to market organization and stocking measures | 0 | 0 |
| Loans to domestic corporations and for projects of other domestic purpose | 225667 | 355654 |
| Contributions to international financing institutions | 80603 | 75512 |
| Co-financing of bilateral projects of German financial co-operation | 32588 | 31603 |
| Successor agencies to *Treuhandanstalt* | 1009 | 1009 |
| Interest compensation guarantees | 1500 | 1500 |
| **Total guarantees pursuant to the 2020 German Budget Act** | **504890** | **631614** |
| Guarantee for a loan to Greece according to the German Financial Stability Act | 22400 | 22400 |
| Loan guarantees under the Act on Guarantees pertaining to the European Financial Stability Facility | 86778 | 89152 |
| Warranties in connection with the SURE-Warranty Act as of July 10, 2020 | 6384 | 6384 |
| Warranties in connection with the Law on Insolvency Protection through Travel Protection Funds (*Reisesicherungsfondsgesetz* - RSG) of June 25, 2021. | 0 | 0 |
| **Total guarantees** | **620451** | **749550** |

---

(1) Does not include guarantees under the KfW Law with respect to money borrowed, bonds issued and derivative transactions entered into
by KfW. For information relating to KfW's borrowings, see "KfW—Business—Financial Markets—Funding."

(2) Includes export finance loans extended by KfW IPEX-Bank guaranteed by the Federal Republic through HERMES, the official German export
credit insurer. For information relating to loans extended by KfW IPEX-Bank benefiting from HERMES coverage, see "KfW—Business—Export
and Project Finance (KfW IPEX- Bank)—Business."

*Source: Bundesministerium der Finanzen, Finanzbericht 2026, Overview 8.1.3, page 295 (https://www.bundesfinanzministerium.de/Content/DE/Downloads/Broschueren_Bestellservice/finanzbericht-2026.html).*

Subscriptions or Commitments by the Federal Republic to International Organizations as of end of December 2025

---

| | | |
|:---|:---|:---|
| Name of organization | Subscription or <br>commitment by the <br>Federal Republic (1) | Amount paid in |
|  | (EUR in millions) | (EUR in millions) |
| IMF (2) | 37277.2 | 37277.2 |
| International Bank for Reconstruction and Development (IBRD) (3) | 14304.7 | 1043.5 |
| International Development Association (IDA) (3) | 30577.6 | 30577.6 |
| International Finance Corporation (IFC) (3) | 1261.39 | 1261.39 |
| European Investment Bank (EIB) (4) | 48539.2 | 4329.4 |
| African Development Bank (AfDB) (3) | 11950.4 | 408.2 |
| African Development Fund (AfDF) (3) | 5100.5 | 4888.7 |
| Asian Development Bank (AsDB) (3) | 5764.4 | 288.3 |
| Asian Development Fund (AsDF) (3) | 1927.0 | 1834.6 |
| Inter-American Development Bank (IDB) (3) | 3242.6 | 233.2 |
| Inter-American Investment Corporation (IIC) (3) | 26.1 | 26.1 |
| Fund for Special Operations (FSO) (3) |  |  |
| International Fund for Agricultural Development (IFAD) (3) | 776.8 | 683.4 |
| Caribbean Development Bank (CDB) (3) | 102.6 | 22.63 |
| Special Development Fund of the Caribbean Development Bank (SDF) (3) | 119.2 | 116.2 |
| European Bank for Reconstruction and Development (EBRD) (4)(5) | 2655.96 | 553.97 |
| Council of Europe Development Bank (CEB) (4)(6) | 1689.63 | 209.85 |
| Asian Infrastructure Investment Bank (AIIB) (3) | 4484.2 | 896.8 |

---

(1) Subscriptions are in part committed in USD, SDR or EUR. SDR or EUR commitments are converted to USD at year-end exchange rates, except
that certain SDR commitments are converted at the fixed conversion rate of SDR 1 = USD 1.39959.

(2) Quota in SDR: 26,634.4 Mio. SDR. As of December 31, 2025, 1 SDR is valued at USD 1.369500. Source: computation provided by the
Ministry of Finance based on data provided by the IMF; the subscription (quota) is fully paid in by the Deutsche Bundesbank. The foreign
currency part of the quota (25% of the subscription) and the Deutsche Bundesbank's further contributions to the IMF's financing
are part of the foreign currency reserves of the Deutsche Bundesbank.

(3) Source: computation provided by the Ministry of Finance and the Ministry for Economic Cooperation and Development.

(4) Source: computation provided by the Ministry of Finance based on euro exchange rate of the European Central Bank of EUR 1 per USD
1.0389 in effect on December 31, 2024.

(5) Capital increase pending completion. The Federal Republic committed to the subscription of new shares in an amount of EUR 343.6 million/USD
356.966 million.

(6) Capital increase pending completion. The Federal Republic committed to new paid-in capital of EUR 50.168 million/USD 52.120 million
for 2025 and 2026.

## Ex-99.E

**EXHIBIT (e)**

![](tm2612034d1_ex99-eimg011.jpg)

**Management report**

**General information about Rentenbank**

**Promotional mandate**

Rentenbank is a promotional bank operating throughout Germany. Under the Law Governing Landwirtschaftliche Rentenbank, its mandate is to promote agriculture, related upstream and downstream sectors, and rural areas in general. Its business model is defined by the framework set out in the Law Governing Rentenbank and its Articles of Incorporation.

As a promotional bank for agribusiness and rural areas, Rentenbank provides earmarked funding for a wide range of investments and initiatives. It grants special promotional loans to local banks on a competitively neutral basis for the financing of projects in Germany. These loans are granted to enterprises in the agriculture and forestry, viticulture and horticulture, and aquaculture and fisheries sectors. Rentenbank also supports projects in the food industry and in other sectors upstream and downstream of agriculture, as well as investments in renewable energy and infrastructure projects in rural areas. In addition, Rentenbank carries out promotional activities on behalf of the federal government and the federal states. The appropriation of profits is aligned with the promotional mandate: One half of distributable profit is allocated to Rentenbank's Promotional Fund and the other half to the Federal Government's Special-Purpose Fund administered by Rentenbank. The Special-Purpose Fund is used to promote innovation in agriculture on the basis of the guidelines issued by the Federal Ministry of Agriculture, Food and Regional Identity (BMLEH). Rentenbank also promotes innovative business models by investing in venture capital funds that provide targeted financing to start-ups in the ag-tech and food-tech sectors and help them gain a foothold in the market. In addition, Rentenbank provides refinancing to banks, savings banks and public authorities, including through the purchase of registered bonds, promissory note loans and securities.

Landwirtschaftliche Rentenbank Annual Report 2025 1

**Management system**

Rentenbank's strategic objectives and the measures required to achieve them, as well as the strategic control parameters, are derived from its business strategy. The strategic objectives are operationalised through a number of sub-strategies.

The strategic control parameters are applied in four categories to assess the effectiveness of strategic measures at the bank-wide level:

&nbsp;&nbsp;&nbsp;&nbsp;• Attractive promotional programmes

&nbsp;&nbsp;&nbsp;&nbsp;• Efficient bank operations

&nbsp;&nbsp;&nbsp;&nbsp;• Appropriate risk culture

&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with the capital and liquidity requirements defined in the Risk Appetite Statement

Segments

Rentenbank is managed on the basis of three segments:

&nbsp;&nbsp;&nbsp;&nbsp;• Promotional Activity

&nbsp;&nbsp;&nbsp;&nbsp;• Capital Investment

&nbsp;&nbsp;&nbsp;&nbsp;• Treasury Management

In the "Promotional Activity" segment, Rentenbank promotes investment in the agricultural sector and in rural areas. This is done by refinancing earmarked loans granted by local banks to ultimate borrowers for use in Germany in accordance with the terms and conditions of the special promotional lending programmes.

In addition, Rentenbank fulfils its promotional mandate by acting as a refinancing partner to local banks with business activities in the agricultural sector and in rural areas, as well as to domestic public authorities. This is achieved through various forms of funding, including registered bonds, promissory note loans and securities. Some of these transactions also contribute to meeting regulatory liquidity requirements. Rentenbank manages both its business volume and its risk structure. Rentenbank's promotional offering for the financing of start-ups related to its promotional mandate also includes investments in venture capital funds, which are reported in the "Promotional Activity" segment.

Landwirtschaftliche Rentenbank Annual Report 2025 2

Refinancing, which is largely maturity-matched, is also allocated to the "Promotional Activity" segment.

The "Capital Investment" comprises the investment of equity and long-term provisions. Investments are made primarily in registered bonds, promissory note loans and securities issued by banks and public-sector issuers.

Short-term liquidity and short-term interest rate risk are managed in the "Treasury Management" segment. Rentenbank has a range of instruments with maturities of up to one year at its disposal both for the short-term investment of surplus liquidity and for raising the liquidity required. In addition to entering into money market transactions, debt securities with longer maturities may also be acquired to manage the Rentenbank's liquidity profile.

Financial key performance indicators

Financial key performance indicators (KPI) are the principal metrics used within the internal management system to measure the achievement of strategic objectives in financial reporting. These KPIs reflect Rentenbank's business activities. They include:

&nbsp;&nbsp;&nbsp;&nbsp;• Operating result (operating result before loan loss provisions and valuation effects)

Rentenbank's business activities are not primarily aimed at generating profits, but<br> at fulfilling its statutory promotional mandate. At the same time, sound business management principles must be observed in order to enable Rentenbank to conduct its promotional activities on a self-supporting basis. In particular, this means that Rentenbank's activities must be economically efficient so that it can sustain its promotional activities on a permanent basis and adapt them where necessary. In view of increasing regulatory requirements, the operating result is retained in order to strengthen Rentenbank's capital base. As a promotional institution under public law, Rentenbank relies on its high credit rating, combined with an appropriate capital markets strategy, to raise funding on favourable terms.

&nbsp;&nbsp;&nbsp;&nbsp;• Cost-income ratio <sup>1</sup>

As a key performance indicator measuring costs in relation to income, the cost-income ratio is used to ensure the efficient use of Rentenbank's resources. As it reflects the relationship between costs and income, it is influenced by changes in both variables. In order to enhance operational transparency, allocations to promotional contributions and reversals of promotional grants from previous years are excluded from the calculation of the cost-income ratio. The cost-income ratio is monitored over a longer period and supplemented by periodic analyses of changes in costs.

<sup>1</sup> The cost-income ratio is calculated as the ratio of costs to income. The numerator comprises the sum of general administrative expenses, depreciation, amortisation and impairment losses on intangible assets and property and equipment, other operating expenses and income taxes. The denominator comprises the sum of interest income and current income less interest expenses (plus allocations to interest subsidies and less reversals from previous years), other operating income and fee and commission income less fee and commission expenses.

Landwirtschaftliche Rentenbank Annual Report 2025 3

&nbsp;&nbsp;&nbsp;&nbsp;• Promotional activity volume

Promotional activity volume refers to the volume of new special promotional loans granted in a given year. The special promotional loans granted to promote agribusiness and rural areas form the core of Rentenbank's promotional activities. These loans are granted as earmarked funding instruments. Loans granted to the promotional institutions of the federal states may also be bundled.

These three financial key performance indicators and their principal components are calculated and compared with the corresponding budget figures as part of the monthly reporting process. They are also included as separate indicators in the multi-year plan. Further information on the financial key performance indicators is provided in the section on Rentenbank's net assets, financial position and results of operations, as well as in the forecast report.

Non-financial key performance indicators

&nbsp;&nbsp;&nbsp;&nbsp;• Employees

Highly qualified and committed employees are the basis for Rentenbank's long-term success. The objectives of the related HR strategy, which is consistently derived from the business strategy, include ensuring adequate staffing in quantitative and qualitative terms, promoting equal opportunities, and providing and further developing HR management instruments and processes.

&nbsp;&nbsp;&nbsp;&nbsp;• Corporate social responsibility

A key aspect of Rentenbank's corporate social responsibility is closely linked to its promotional mandate. However, as a direct public law institution, Rentenbank is also committed to serving the public good beyond the scope of that mandate.

&nbsp;&nbsp;&nbsp;&nbsp;• ESG ratings

An enterprise's sustainability management activities are reflected in its ESG ratings, which assess the enterprise's overall efforts in this area. ESG ratings are an important indicator for external stakeholders, but they also serve as a measure of the effectiveness of implemented sustainability measures. Rentenbank aims to continuously improve its ESG ratings or maintain them at a consistently high level.

Landwirtschaftliche Rentenbank Annual Report 2025 4

**Affiliated companies**

Rentenbank's direct and indirect subsidiaries are:

&nbsp;&nbsp;&nbsp;&nbsp;• LR Beteiligungsgesellschaft mbH (LRB)

&nbsp;&nbsp;&nbsp;&nbsp;• DSV Silo- und Verwaltungsgesellschaft mbH (DSV)

All material risks of the subsidiaries are concentrated at Rentenbank and managed centrally by it. As in previous years, the scope of the subsidiaries' business activities remained strictly limited in the 2025 financial year. DSV's principal activity was limited to fulfilling pension obligations towards its former employees and employees of Getreide-Import-Gesellschaft mbH (GIG), the former subsidiary of LRB, which was merged into DSV with retroactive effect from 1 January 2024, with the result that DSV is now its legal successor. LRB's business activity essentially consists in the management as a holding company and business management agent of the affiliate DSV and the investment of liquid funds. Rentenbank has issued a letter of comfort in favour of LRB, under it which it undertakes, insofar as and for as long as it holds 100% of LRB's equity, to provide it with enough financial resources that it will be able to fulfil its obligations punctually at all times.

**Public Corporate Governance Code**

The Statement of Compliance with the German Public Corporate Governance Code issued by the Management Board and the Supervisory Board is publicly available on Rentenbank's website.

Landwirtschaftliche Rentenbank Annual Report 2025 5

**Economic report**

**General economic and institution-specific conditions**

International interest rate and monetary policy

In 2025, following two years of recession, Germany recorded only modest year-on-year growth in gross domestic product (GDP) of 0.2%. Growth was attributable primarily to higher consumer spending by households and the government. The export sector faced higher US tariffs, the appreciation of the euro and stronger competition from China. As a result, exports declined again. Investment weakness also persisted. Investment in both equipment and construction was lower than in the previous year.<sup>1</sup>

Inflation in the euro area continued to decline over the course of 2025. Growth in the Harmonised Index of Consumer Prices (HICP) initially fell from 2.5% in January to 1.9% in May. In the second half of the year, momentum picked up slightly at first before easing again. In December, consumer prices were 1.9% higher than in the same month of the previous year and, on average, 2.1% above the 2024 level.<sup>2</sup>

In line with the favourable inflation trend, the European Central Bank (ECB) lowered its deposit rate in four steps from 3.00% to 2.00% in June during the first half of 2025 and then left it unchanged until the end of the year. The ECB also announced that its holdings of securities under the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) had been declining at a measured and predictable pace, as the Eurosystem did not reinvest the principal payments from maturing securities.<sup>3</sup>

The US Federal Reserve (Fed) also continued to ease its monetary policy in 2025. From the end of October, the Fed lowered its key policy rate in three steps from a range of 4.25% to 4.50% to a range of 3.50% to 3.75% by the end of the year.<sup>4</sup>

Over the course of 2025, the euro appreciated against the US dollar. At the end of 2025, the ECB set the reference rate for the euro/US dollar exchange rate at 1.175, which was 13.1% above the rate at the end of 2024 (1.039).<sup>5</sup>

<sup>1</sup> Destatis: Press Release No. 017 of 15 January 2026.

<sup>2</sup> Eurostat: Euro indicators June 2025, Annual inflation up to 2.0% in the euro area, 17 July 2025; Euro indicators December 2025, Annual inflation down to 1.9% in the euro area, 19 January 2026.

<sup>3</sup> ECB press releases of 30 January, 6 March, 17 April and 5 June 2025.

<sup>4</sup> http://www.leitzinsen.info/usa.htm

<sup>5</sup> ECB reference exchange rates: https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-usd.de.html

Landwirtschaftliche Rentenbank Annual Report 2025 6

Development of long-term interest rates

In the capital market, the new federal government's announcement at the beginning of March of a debt-financed increase in public spending on infrastructure and defence led to a marked rise in the yield on ten-year German government bonds. Although yields initially declined again in the following weeks, they rose once more towards the end of the year. As a result, at the end of 2025 the yield on ten-year German government bonds stood at 2.86%, above the year-end 2024 level of 2.36%.<sup>1</sup>

Development of the economic environment in promotional activity

According to estimates by the Federal Information Centre for Agriculture (*Bundesinformationszentrums Landwirtschaft*), the production value of German agriculture rose slightly in 2025 to EUR 76.8 billion, up 1.7% on the previous year. While production value in crop production fell by 5.2% to EUR 32.4 billion, the value of animal production and animal products rose significantly year on year by 8.4% to EUR 39.3 billion. Here, demand was met by relatively limited supply of livestock for slaughter, resulting in higher producer prices. This did not apply to pigs, however, for which revenues were lower. By contrast, farmers received higher average prices for<br> raw milk and eggs over the year.

In crop production, producer prices were mostly below the previous year's level, particularly for potatoes, sugar beet, fodder crops and fresh vegetables. In the case of cereals, however, the strong harvest more than offset the decline in prices. As a result, production value increased. Higher revenues were also recorded for oilseeds and fruit.<sup>2</sup>

Overall, the economic situation of full-time agricultural enterprises in the 2024/2025 financial year (1 July 2024 to 30 June 2025) was only slightly better. On average, the business result stood at EUR 78,500, 0.4% higher than in the previous year.<sup>3</sup>

Revenue in the German food industry rose by around EUR 10 billion to EUR 240 billion in 2025. Exports accounted for 23.6% of this figure. The sector's revenue continues to be driven above all by still high costs for consumers, particularly for fresh food.<sup>4</sup>

Electricity generation from renewable energy sources continued to gain in importance in Germany in 2025. It rose by 1% to 289.5 TWh. Onshore wind power generation accounted for the greatest share (37%), followed by photovoltaics (31%) and biomass (15%). The preliminary net increase in onshore wind power capacity was 4,605 MW in 2025, that being 7.2% more than in the

<sup>1</sup> Börsen-Zeitung of 31 December 2025, p. 45.

<sup>2</sup> BMLEH statistics: https://www.bmel-statistik.de/landwirtschaft/landwirtschaftliche-gesamtrechnung/produktionswert

<sup>3</sup> Situation Report 2024/2025 of the German Farmers Association (Deutscher Bauernverband, DBV), Chapter 5.2.

<sup>4</sup> EY press release, "Revenue in agribusiness rises again, but outlook remains gloomy" (Umsatz im Agribusiness steigt wieder, Aussichten bleiben allerdings trüb), 13 January 2026.

Landwirtschaftliche Rentenbank Annual Report 2025 7

previous year. The preliminary net increase in photovoltaics capacity was 16,577 MW, which was nearly 16.5% more than in 2024.<sup>1</sup>

**Business development**

New business involving special promotional loans reached EUR 6.6 billion in 2025, compared with EUR 3.6 billion in the previous year. The normalisation of the yield curve led to a significant increase in loan demand, particularly in the "Renewable energy" promotional line. Volume growth was also achieved in all other promotional lines, especially in the "Agribusiness" promotional line. New business in the "Agriculture" promotional line was likewise above the previous year's level. In this area, the upward trend seen in the previous year continued in the funding of livestock housing. In the "Rural development" promotional line, the promotional institutions of the federal states increased their demand for global loans for rural areas. To strengthen Germany's innovation landscape, Rentenbank once again invested during the reporting year in venture capital funds focused on the AgTech and FoodTech sectors.

In the financial year under review, new business involving special promotional loans, registered debt securities, promissory notes, securities and venture capital totalled EUR 11.8 billion (EUR 7.9 billion), and was therefore significantly above the previous year's level.

Overall, new business was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **1/1/ to**<br> **31/12/2025**<br> mEUR | **1/1/ to**<br> **31/12/2024**<br> mEUR | **Change**<br> mEUR |
| Special promotional loans | 6559 | 3602 | 2957 |
| Registered bonds/<br> promissory notes<sup>2</sup> | 1725 | 2241 | -516 |
| Securities<sup>3</sup> | 3464 | 2033 | 1431 |
| Venture capital investments | 21 | 48 | -27 |
| **Total** | **11769** | **7925** | **3875** |

---

.

<sup>1</sup> German Federal Environment Agency: Monthly Report on the Development of Renewable Electricity Generation and Output in Germany, as of 13 January 2026.

<sup>2</sup> \*excluding "non-EU"

<sup>3</sup> \*excluding "non-EU"

Landwirtschaftliche Rentenbank Annual Report 2025 8

In the reporting year, Rentenbank raised EUR 10.9 billion (EUR 8.2 billion) in medium and long-term funding in the national and international financial markets. Rentenbank used the following instruments for medium- and long-term refinancing:

---

| | | | |
|:---|:---|:---|:---|
|  | **1/1/ to**<br> **31/12/2025**<br> bEUR | **1/1/ to**<br> **31/12/2024**<br> bEUR | **Change**<br> bEUR |
| Euro Medium-Term Note (EMTN) | 7.6 | 6.2 | 1.4 |
| Global bonds | 2.6 | 1.4 | 1.2 |
| AUD Medium-Term Note (MTN) | 0.6 | 0.6 | 0.0 |
| Domestic capital market instruments | 0.1 | 0.0 | 0.1 |
| **Total** | **10.9** | **8.2** | **2.6** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 9

**Economic position**

Financial performance

The Bank's financial performance is presented in the table below:

---

| | | | |
|:---|:---|:---|:---|
|  | **1/1/ to**<br> **31/12/2025**<br> mEUR | **1/1/ to**<br> **31/12/2024**<br> mEUR | **Change**<br> mEUR |
| Net interest income<sup>1</sup> | 228.8 | 287.5 | -58.7 |
| Net commission income | -4.6 | -4.7 | 0.1 |
| Administrative expenses | 146.2 | 130.8 | 15.4 |
| Other operating result | 10.3 | 11.3 | -1.0 |
| Income taxes / other taxes | 1.7 | 1.7 | 0.1 |
| **Operating result before loan loss provisions and valuation effects** | **86.6** | **161.6** | **-75.0** |
| Loan loss provisions and valuation effects | 47.6 | 123.6 | -76.0 |
| **Net income for the year** | **39.0** | **38.0** | **1.0** |

---

<sup>1</sup> Net interest income including income from equity interests.

**Operating result before loan loss provisions and valuation effects** 

The operating result before loan loss provisions and valuation amounted to EUR 86.6 million. It was therefore significantly below the previous year's level (EUR 161.6 million). The year-on-year decline was attributable primarily to a higher promotional contribution and thus lower income in the "Promotional Activity" segment. In addition, administrative expenses increased.

Landwirtschaftliche Rentenbank Annual Report 2025 10

**Net interest income**

<br> Net interest income by segment:

---

| | | | |
|:---|:---|:---|:---|
|  | **1/1/ to**<br> **31/12/2025**<br> mEUR | **1/1/ to**<br> **31/12/2024**<br> mEUR | **Change**<br> mEUR |
| Net interest income |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promotional Activity | 128.6 | 195.0 | -66.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital Investment | 88.5 | 75.6 | 12.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury Management | 11.7 | 16.9 | -5.2 |
| **Total net interest income** | **228.8** | **287.5** | **-58.7** |

---

Net interest income in the "**Promotional Activity**" segment amounted to EUR 128.6 million and was therefore significantly below the previous year's level (EUR 195.0 million). As the volume of special promotional loans increased significantly compared with the previous year, more grants were once again granted, which had an adverse effect on net interest income. In addition, the higher issuance volume, combined with a declining funding margin, had a negative impact on results.

In the "**Capital Investment**" segment, net interest income was slightly above our planning and increased by 17% year on year to EUR 88.5 million. This was due not only to the additional income from the higher investment volume resulting from the new allocation, but also to reinvestment yields that were above the yields on maturing investments.

Net interest income in the "**Treasury Management**" segment, at EUR 11.7 million, was below the previous year's figure of EUR 16.9 million. The 2025 financial year was marked by a continued narrowing of margins in the money market business, which had a corresponding adverse effect on results.

**Administrative expenses** 

Administrative expenses increased by 12% to EUR 146.2 million (EUR 130.8 million). This was due primarily to an increase of EUR 9.2 million in personnel expenses. At the same time, other operating expenses rose by EUR 3.9 million and depreciation, amortisation and impairments by EUR 2.3 million.

The increase in personnel expenses was attributable mainly to an average increase of 22 employees (as defined in Section 267 (5) of the German Commercial Code [*Handelsgesetzbuch*; HGB]), as well as to collectively agreed pay increases and higher pension expenses (special effect in 2024 due to a reduced inflation assumption).

Landwirtschaftliche Rentenbank Annual Report 2025 11

The increase in other operating expenses resulted primarily from the continued implementation of the IT roadmap and from targeted investment in the IT landscape.

Depreciation, amortisation and impairments of intangible assets as well as property and equipment rose to EUR 16.5 million (EUR 14.2 million), due in particular to higher amortisation of software.

**Other operating result** 

Other operating result declined from EUR 11.3 million to EUR 10.3 million. This was due mainly to lower reimbursements of costs arising from the settlement of the federal programmes.

**Loan loss provisions / valuation effects** 

Under "Loan loss provisions / valuation effects", a net amount of EUR 47.8 million was used to increase the contingency reserve. Of this amount, EUR 22.8m was allocated to the fund for general banking risks.

**Net income for the year / distributable profit** 

Net income for the year increased from EUR 38.0 million to EUR 39.0 million in the financial year under review.

Subject to the approval of the Supervisory Board, a total of EUR 19.5 million (EUR 19.0 million) from net income for the year was allocated to the principal reserve in the preparation of the annual financial statements.

After the allocation to the principal reserve, distributable profit amounted to EUR 19.5 million, slightly above the previous year's level (EUR 19.0 million). Distributable profit is to be allocated in equal parts to the Federal Government's Special-Purpose Fund at Rentenbank and to Rentenbank's Promotional Fund.

Landwirtschaftliche Rentenbank Annual Report 2025 12

Net assets and financial position

Rentenbank's net assets and financial position as presented in the annual financial statements are as follows:

**Changes in significant asset items**

---

| | | | |
|:---|:---|:---|:---|
|  | **31 December 2025**<br> mEUR | **31 December 2024**<br> mEUR | **Change**<br> mEUR |
| Loans and advances <br> to banks | 57827.5 | 65615.4 | -7787.9 |
| Loans and advances <br> to customers | 7100.8 | 7003.2 | 97.6 |
| Bonds and other fixed-income securities | 18949.0 | 16742.6 | 2206.4 |

---

Loans and advances to banks amounted to EUR 57.8 billion at the year-end reporting date (EUR 65.6 billion). Their share of total assets was 63.9% and was lower than in the previous year. However, they continued to represent the largest asset class. The decline in loans and advances to banks was attributable mainly to a reduction in money market business. In addition, the stock of special promotional loans declined slightly. In the 2025 financial year, new business involving special promotional loans increased significantly. As a substantial portion of the committed funds has not yet been drawn down, the stock of special promotional loans is expected to rise again in 2026 as these commitments are utilised, thereby offsetting the current decline.

Loans and advances to customers consist primarily of promissory notes issued by the federal states and municipalities. Overall, this balance sheet item increased slightly year on year by EUR 0.1 billion to EUR 7.1 billion.

At the year-end reporting date, the stock of bonds and other fixed-income securities had increased by EUR 2.2 billion year on year to EUR 18.9 billion. As in the previous year, the entire stock was classified as fixed assets.

Landwirtschaftliche Rentenbank Annual Report 2025 13

**Changes in key items of liabilities and equity**

---

| | | | |
|:---|:---|:---|:---|
| <br>**Liabilities** | **31 December 2025**<br> mEUR<br>| **31 December 2024**<br> mEUR<br>| **Change**<br> mEUR<br>|
| Liabilities to banks | 814.3 | 1528.3 | -714.0 |
| Liabilities to customers | 1497.4 | 1490.4 | 7.0 |
| Securitised liabilities | 80523.4 | 83752.3 | -3228.9 |
| **Total** | **82835.1** | **86771.0** | **-3935.9** |
| **Equity (including the fund for general banking risks)** |  |  |  |
| Subscribed capital | 135.0 | 135.0 | 0.0 |
| Retained earnings | 1272.1 | 1252.6 | 19.5 |
| Distributable profit | 19.5 | 19.0 | 0.5 |
| Fund for general banking risks | 3576.3 | 3553.5 | 22.8 |
| **Total** | **5002.9** | **4960.1** | **42.8** |

---

**Liabilities** 

Liabilities to banks, at EUR 0.8 billion, were EUR 0.7 billion below the previous year's level. The decline in outstanding amounts was attributable mainly to the maturity of global loans totalling EUR 0.5 billion. In addition, liabilities to customers, at EUR 1.5 billion, remained at the previous year's level.

Securitised liabilities declined by EUR 3.2 billion, or 3.9%, to EUR 80.5 billion. At EUR 63.7 billion, the Medium-Term Note (MTN) programmes remained the most important source of funding and increased by EUR 2.2 billion compared with the previous year. The stock of outstanding Euro Commercial Paper (ECP) issuances declined to EUR 3.7 billion (EUR 7.0 billion). Likewise, the stock of outstanding global bonds decreased to EUR 12.6 billion (EUR 14.8 billion).

**Equity** 

Equity, including the fund for general banking risks pursuant to section 340g HGB, increased by EUR 42.8 million to EUR 5,002.9 million. Net income for the year of EUR 39.0 million was allocated in equal parts to retained earnings and recognised as distributable profit, respectively. The fund for general banking risks was increased by EUR 22.8 million.

Landwirtschaftliche Rentenbank Annual Report 2025 14

**Regulatory capital ratios** 

The total capital ratio and the Common Equity Tier 1 capital ratio both stood at 32.6% (38.3%). They reflect Rentenbank's strong capital base even upon initial application of CRR III and continue to remain well above the regulatory minimum requirements.

For the amount and development of regulatory own funds and risk-weighted assets (RWA), please refer to the "Risk-bearing capacity" section.

**Capital expenditures** 

In the year under review, capital expenditures continued to focus on modernising the IT landscape, in particular replacing the proprietary host-based core banking system. In this context, major milestones were successfully achieved through implementations in SAP and Murex. In addition, further implementation measures were launched. Substantial funds were also invested in implementing regulatory requirements and enhancing IT security.

The funding portal introduced in December 2020 as part of the Federal Forestry Programme was further optimised, and the internal IT systems were integrated.

To further digitalise processes, additional bots were developed to handle routine tasks in application processing and thereby contribute to greater efficiency.

Aside from modernising the IT landscape, Rentenbank is investing in the energy-efficient refurbishment of the listed building at its Hochstrasse site in Frankfurt am Main.

**Liquidity** 

The Federal Republic of Germany bears institutional responsibility for Rentenbank and has assumed liability for Rentenbank's obligations (refinancing guarantee).

On the basis of the resulting AAA ratings, liquidity can be raised in the market without difficulty. The high volume of debt securities eligible for refinancing with Deutsche Bundesbank constitutes an additional liquidity reserve. For further details, please refer<br> to the presentation of liquidity risks in the risk report forming part of this management report.

Overall assessment of business development and economic position

The Management Board considers business development and the development of Rentenbank's net assets, financial position and results of operations to have been solid overall, albeit below expectations. This also applies to the financial and non-financial key performance indicators defined in the "Management system" section.

Landwirtschaftliche Rentenbank Annual Report 2025 15

**Financial and non-financial key performance indicators**

Financial key performance indicators

The operating result before "Loan loss provisions / valuation effects" (operating result) amounted to EUR 86.6 million and was therefore 46% below the previous year's figure of EUR 161.6 million. Expectations for 2025 were not met. Net interest income declined by 20% year on year, while administrative expenses increased by 12%.

The developments in income and administrative expenses described above also affected the cost-income ratio key performance indicator. In addition, allocations to promotional contributions (EUR 66.6m) and reversals of promotional subsidies from previous years (EUR 4.1 million) are excluded. Accordingly, the cost-income ratio increased to 50.7% (41.8%) compared with the previous year. Overall, the cost-income ratio remains at a solid level.

The promotional volume key performance indicator comprises the annual volume of new special promotional loans committed, which amounted to EUR 6.6 billion (EUR 3.6 billion) in the reporting year and was therefore above expectations.

Non-financial key performance indicators

With regard to the key performance indicator "Employees", a total of 492 (459) employees worked at Rentenbank at the end of 2025, excluding trainees, interns, employees on parental leave and members of the Management Board.

In 2025, employee training averaged 2.9 days per person, below the previous year's level (3.3 days).

The proportion of women at the top management level below the Management Board (FK I) stood at 33% at year-end. Among all other managers (FK II), the figure was 38%.

Rentenbank is committed to society in a variety of ways. Through the Promotional Fund, agribusiness funding, innovation funding and general sponsorship, the forest project in the Buchenborn forestry district, as well as donations to cultural institutions and social organisations in Frankfurt am Main, a total of EUR 9.87 million in support was provided in 2025.

Rentenbank's sustainability performance is regularly assessed by rating agencies specialising in sustainability. Rentenbank receives regular ratings from ISS ESG, MSCI ESG and Sustainalytics. In 2025, our ISS ESG rating remained unchanged at C- (48.6 points). Our MSCI ESG rating was downgraded from AA to A (on a scale from AAA to CCC). In the 2025 financial year, the Sustainalytics rating deteriorated from 9.1 to 10.9.

Landwirtschaftliche Rentenbank Annual Report 2025 16

Despite the slight deterioration in the MSCI ESG and Sustainalytics ratings, Rentenbank remains at a level that is average for the sector in these ratings. Accordingly, the development of the ESG ratings was slightly below expectations.

**Overview**

&nbsp;&nbsp;&nbsp;&nbsp;• ISS ESG (as at 21 December 2025): C- (on a scale from A+ to D-)

&nbsp;&nbsp;&nbsp;&nbsp;• MSCI ESG Ratings (as at 22 April 2025): A (on a scale from AAA to CCC)

&nbsp;&nbsp;&nbsp;&nbsp;• Sustainalytics (as at 20 February 2025): Low Risk, with a score of 10.9 out of a possible 100 points, where 0 represents
the best score

We will continue to make further efforts in the coming years to improve our ESG ratings on an ongoing basis.

Landwirtschaftliche Rentenbank Annual Report 2025 17

**Forecast and opportunities report**

**Development of business conditions and the<br> operating environment**

Rentenbank's economic performance is shaped primarily by conditions in the lending and financial markets. These are influenced to a significant extent by central bank monetary policy, price and exchange rate developments, and trends in public finances.

Macroeconomic outlook

The persistent uncertainties seen in 2025, caused by geopolitical conflicts, erratic US tariff policy and further trade tensions, will continue in 2026 and weigh on economic activity worldwide to varying degrees. As an exporting nation, Germany is particularly affected by these developments.

According to the International Monetary Fund (IMF), global economic growth of 3.3% is expected in 2026. For Germany, however, the IMF anticipates a much lower increase in gross domestic product (GDP) of only 1.1% year on year.<sup>1</sup> According to Deutsche Bundesbank, this growth is likely to be driven primarily by the federal government's expansionary fiscal stance, with additional public spending on defence and infrastructure.<sup>2</sup>

The price trend is expected to continue broadly sideways. According to Deutsche Bundesbank, growth in the Harmonised Index of Consumer Prices (HICP) will remain almost unchanged in 2026 compared with the previous year, averaging 2.2% for the year after 2.3% in the previous year.<sup>3</sup> This would leave it only slightly above the European Central Bank's (ECB) target of 2%.

Against the backdrop of low inflation rates, key interest rate increases are not currently expected either in the euro area or in the United States. However, owing to the rising financing needs of sovereign issuers and the first interest rate increases in Japan, Rentenbank expects the capital market yield curve to steepen over the further course of the year, while volatility remains elevated. If geopolitical tensions intensify, a flight to safe government bonds can no longer be taken for granted; instead, investors may also demand higher risk premiums in this segment in future.

Outlook for the economic environment in promotional activity

Investment activity in the agriculture and agribusiness sector, and thus also demand for special promotional loans, is influenced by a wide range of factors. These include the development of general economic conditions, which affect demand and prices in agricultural

<sup>1</sup> IMF: World Economic Outlook Update, January 2026: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026

<sup>2</sup> Deutsche Bundesbank Monthly Report, December 2025, p. 6.

<sup>3</sup> Deutsche Bundesbank Monthly Report, December 2025, p. 6.

Landwirtschaftliche Rentenbank Annual Report 2025 18

markets. However, investment behaviour in agriculture also depends heavily on political and regulatory conditions as well as on public funding.

The Association of Chambers of Agriculture (*Verband der Landwirtschaftskammern*; VLK) expects declining business results for agricultural enterprises of all types in the current financial year 2025/26. Despite high yields of market crops and basic fodder from the 2025 harvest across Germany, farms face significant economic challenges, as market prices – particularly for arable crops and most animal products – are under pressure, not least due to challenging conditions in national and international agricultural markets. With regard to agricultural inputs, the VLK expects some easing in expenditure on seeds and planting materials as well as fuels. By contrast, higher costs are anticipated for fertilisers, crop protection, services and personnel.<sup>1</sup>

The "Rentenbank Agricultural Barometer" survey commissioned by Rentenbank reflects farmers' assessment of their current and future economic situation in Germany. According to the latest survey results from December 2025, the assessment of the future economic situation has deteriorated further compared with the September survey. Farms engaged in pig and poultry farming assess their future economic situation somewhat more positively than other types of operations. High agricultural input costs, agricultural policy and low producer prices are the main reasons for negative assessments. Despite the subdued sentiment, 62% of respondents are planning investments (previous survey: 60%), albeit with a somewhat lower average investment volume.<sup>2</sup>

The economic recovery in Germany also offers growth opportunities for companies in the agribusiness sector. Nevertheless, challenges remain, particularly with regard to labour and energy costs, while uncertainties arising from geopolitical crises and US tariffs continue to weigh on exports. Certain food trends observed in recent years are expected to persist, such as health awareness, sustainability and convenience.<sup>3</sup>

In the field of renewable energy, Rentenbank expects further growth momentum. For 2026, the German Wind Energy Association (*Bundesverband Windenergie*; BWE) anticipates additional gross installations of wind power capacity of between 8 and 8.5 GW.<sup>4</sup> By contrast, the German Solar Association (*Bundesverband Solarwirtschaft*; BSW) expects a slight decline in photovoltaic expansion and anticipates a deterioration in the funding environment and regulatory framework.<sup>5</sup>

Geopolitical tensions are leading primarily to higher price volatility in agricultural markets, affecting both agricultural commodities and agricultural inputs such as energy, fertilisers and construction materials. In addition, agricultural input costs are expected to rise further as a result of the increase in CO₂ taxation on heating and motor fuels at the beginning of 2026, and from 2026 onwards the EU's carbon border adjustment mechanism will make imported mineral fertilisers more expensive.<sup>6</sup>

<sup>1</sup> VLK: Forecast of economic developments for the 2025/26 financial year.

<sup>2</sup> Rentenbank Agricultural Barometer, December 2025 survey.

<sup>3</sup> EY: "Economic Barometer Agribusiness in Germany 2026", pp. 39–40.

<sup>4</sup> BWE press release: "Onshore wind energy expansion in 2025: sustaining strong growth, ensuring resilience" (15 January 2026)

<sup>5</sup> BSW press release: "Photovoltaics surpass lignite and natural gas" (5 January 2026)

<sup>6</sup> https://www.agrarheute.com/markt/duengemittel/eu-verschaerft-klimaschutz-duengerpreise-duerften-2026-deutlich-steigen-636955

Landwirtschaftliche Rentenbank Annual Report 2025 19

In general, volatile agricultural markets (including those affected by weather events) are not a new phenomenon for agriculture. We therefore do not expect international crises to have any significant impact on our promotional activity. Only under extreme scenarios is a degree of restraint in agricultural investment to be expected. As an instrument, we offer liquidity assistance loans.

German agricultural exports to the United States are of minor importance (1.3% of total German agricultural exports)<sup>1</sup>, meaning that the imposition of tariffs by the United States has no material impact on German agriculture, with only a few exceptions (e.g. viticulture). Accordingly, US tariff policy is also unlikely to have a significant effect on our promotional activity.

In January of the current year, a comprehensive free trade agreement between the EU and South American countries (the Mercosur Agreement) was signed and is currently under review by the European Court of Justice. This will create the world's largest free trade area, in which tariffs on more than 90% of exports are to be eliminated. This will improve access for German agribusiness to the markets of the Mercosur countries, for example for dairy products, confectionery, fresh fruit and wine, particularly also for organic products and processed foods. In addition, protection for traditional geographical indications (e.g. "Black Forest ham") will be strengthened. The opening of the European market to imports of beef, poultry, sugar and ethanol is limited by supply quotas, long transition periods and bilateral safeguard clauses. Imports from Mercosur countries will also continue to be subject to EU regulatory requirements.<sup>2</sup> It is currently unclear when the agreement will enter into force. No impact on our promotional activity is expected.

The same applies to the current free trade agreement between the EU and India. While this improves access for German agribusiness to the Indian market, certain European agricultural sectors remain fully protected, as products such as beef, poultry meat, rice and sugar are excluded from liberalisation. All imports from India will likewise remain subject to EU regulatory requirements.<sup>3</sup>

**Business development forecast**

In the 2025 financial year, loan loss provisions remained largely unchanged. Rentenbank expects only minor fluctuations in loan loss provisions in 2026. No significant changes are anticipated for the volume-weighted average credit quality of the loan portfolio, which is rated AA. This is supported by the low unsecured portion of the credit portfolio of 8.1% and the stable development, with counterparties continuing to have strong credit ratings. Rentenbank continuously monitors the economic performance of its counterparties. In 2025, there was no need for specific loan loss provisions (specific valuation allowances, and none are included in the planning for 2026.

To forecast future net assets, financial position and results of operations, annual and multi-year plans are prepared over a five-year horizon. These include planning for new business, portfolio development, capital, income and costs, as well as adverse scenarios. In addition, the planning includes key regulatory metrics relevant for management purposes and a forecast of the

<sup>1</sup> https://www.bmel-statistik.de/aussenhandel/deutscher-aussenhandel/aussenhandel-mit-den-usa

<sup>2</sup> https://www.bmleh.de/SharedDocs/FAQs/DE/faq-eu-mercosur/FAQ-eu-mercosur_List.html

<sup>3</sup> https://germany.representation.ec.europa.eu/news/eu-und-indien-beschliessen-freihandelsabkommen-2026-01-27_de

Landwirtschaftliche Rentenbank Annual Report 2025 20

development of risk-bearing capacity. The forecasts set out below relate in each case to the plan for 2026.

Planning for the 2026 financial year

Under the current planning assumptions, the "Promotional Activity" segment is expected to show an average portfolio broadly in line with the previous year, with largely unchanged lending and funding margins in new business. Although planned new business margins for 2026 are below the margins on maturing positions, the reduction in provisions for subsidies in special promotional loans results overall in a moderate increase in planned net interest income in the "Promotional Activity" segment. The reduction in provisions is due to a change in presentation and is not related to the actual subsidies granted.

Special promotional loans will continue to be the main focus of lending activity. Rentenbank is planning new business of EUR 6.2 billion for 2026.

In the "Promotional Activity" segment, the portfolio of securities as well as registered bonds and promissory notes is expected to remain broadly at the 2025 level.

In 2022, Rentenbank expanded its promotional offering for financing start-ups aligned with its promotional mandate to include investments in venture capital funds. To date, commitments in the three-digit million euro range have already been made. Further investments in the mid double-digit million euro range are planned for 2026.

In the "Capital Investment", Rentenbank expects interest income in 2026 to be slightly above the previous year's level. This is due primarily to new business yields exceeding the yields on maturing investments, as well as the investment of new allocations.

Net interest income in the "Treasury Management" segment is expected to remain at the current level in 2026 due to the continued narrowing of margins.

Overall, a moderately increasing trend in net interest income across the three segments is planned for 2026.

The number of employees is expected to increase further in 2026.

Following a decline in the previous year, the number of training days per employee is expected to rise moderately.

Administrative expenses for 2026 are expected to be below the previous year's level. The anticipated increase in personnel expenses is likely to be more than offset by a decline in IT consulting expenses. Against the backdrop of developments in income and costs, an increase in the operating result before "Loan loss provisions / valuation effects" is planned overall for 2026. Rentenbank will continue to be able to deliver its planned promotional activities in full from its ongoing income.

Landwirtschaftliche Rentenbank Annual Report 2025 21

As a result of the expected moderate increase in net interest income and the decline in administrative expenses, the cost-income ratio is expected to decrease slightly compared with 2025.

Rentenbank's ESG ratings are expected to remain at least at their current level.

Its corporate citizenship is also expected to remain broadly in line with the previous financial year.

Landwirtschaftliche Rentenbank Annual Report 2025 22

**Opportunities and risks**

Compared with the results planned for 2026, changes in the underlying conditions may give rise to additional opportunities and risks for business development.<br>The further development of the economic situation in Germany will remain subject to uncertainty in 2026. In addition to weak domestic economic momentum, geopolitical tensions are having a negative impact on the global economy. These factors could contribute to a pronounced reluctance to invest and thereby impair economic development. Against this backdrop, the risk of a persistently subdued or declining economic environment remains.

In such a scenario, the key factors affecting opportunities and risks, in addition to loan demand, are developments in interest rates and credit spreads. However, owing to Rentenbank's business model as a promotional bank, the opportunities and risks for its net assets, financial position and results of operations are limited.

In an economically uncertain environment, Rentenbank's own credit spreads have generally proved relatively stable on the basis of its rating. A widening of counterparties' credit spreads would then have a positive effect on net interest income. Rising interest rates would likewise have a positive effect on net interest income, as Rentenbank invests its equity over the long term in fixed-income positions.

For net assets, this would have a temporary adverse effect through an increase in unrealised losses. In a deteriorating economic environment, there is a risk that credit quality in the credit portfolio could worsen and/or that loan demand, and thus the volume of new business, could decline. In such an environment, the economic conditions for venture capital investments would also deteriorate, increasing the risk of impairments and defaults.

Further reporting on risks is provided in the Risk Report section.

Additional burdens on administrative expenses could arise from further regulatory requirements that are not yet known. This could lead to higher IT and personnel costs. In addition, further changes to the IT infrastructure may become necessary beyond the investments already planned. As part of the refurbishment of the listed bank building on Hochstrasse, adverse changes to planning assumptions may arise, which would result in correspondingly higher costs.

Landwirtschaftliche Rentenbank Annual Report 2025 23

**Development in the current financial year**

At the beginning of the year, the operating result before loan loss provisions / valuation effects was above both the previous year's level and the planned level. This was due in particular to net interest income, which benefited from several factors at the beginning of the year.

Based on developments to date in the current financial year, the Management Board currently considers the planned operating result for the 2026 financial year to be achievable.

The forecast report contains certain forward-looking statements based on the current expectations, assumptions, estimates and projections of the Management Board, as well as on the information available to it. These include, in particular, statements regarding plans, business strategy and prospects. Words such as "expect", "anticipate", "intend", "plan", "believe", "seek", "estimate" and similar expressions identify such forward-looking statements. These statements should not be understood as guarantees of the future developments referred to therein; rather, they depend on factors that involve risks and uncertainties and are based on assumptions that may prove to be incorrect. Unless required otherwise by law, Rentenbank assumes no obligation to update forward-looking statements after the publication of this information.

Landwirtschaftliche Rentenbank Annual Report 2025 24

**Risk report**

Rentenbank's Risk Management System (RMS) serves to identify, manage and monitor the risks arising from its business activities. Rentenbank's risk management is based on regulatory requirements and the specific features of its business model as a promotional bank. The key elements of risk management are:

&nbsp;&nbsp;&nbsp;&nbsp;• the risk strategy, which is derived consistently from the market-oriented business strategy,

&nbsp;&nbsp;&nbsp;&nbsp;• the Risk Appetite Framework and the Risk Appetite Statement,

&nbsp;&nbsp;&nbsp;&nbsp;• the risk culture,

&nbsp;&nbsp;&nbsp;&nbsp;• the ongoing review of the adequacy of capital and liquidity,

&nbsp;&nbsp;&nbsp;&nbsp;• a clear organisational and procedural structure for the RMS within a three-lines-of-defence structure.

Rentenbank is not a CRR institution within the meaning of Section 1 (3d) KWG and is supervised at national level by BaFin and Deutsche Bundesbank. Nevertheless, pursuant to Section 1a (1) KWG, the provisions of the CRR apply to Rentenbank. In addition, Rentenbank does not maintain a trading book within the meaning of Article 4 (1), items 85 and 86 CRR.

**Organisation of risk management**

Overall responsibility for the RMS lies with the Management Board. It is informed regularly and on an ad hoc basis about the risk situation.

As part of its regular meetings, the Supervisory Board is informed by the Management Board about the risk situation; if material risk-relevant events occur, ad hoc information is provided.

The Supervisory Board has established various committees to address specific topics. In the Risk Committee, the Management Board reports on the risk situation. In addition to discussing the risk situation, the Risk Committee addresses the risk strategy and material risk-related matters. The Audit Committee focuses in particular on the audit report and the annual financial statements. Both committees, as well as the competent supervisory authorities, receive the risk report on a quarterly basis.

Landwirtschaftliche Rentenbank Annual Report 2025 25

![](tm2612034d1_ex99-eimg001.jpg)

Rentenbank has established various bodies for business and risk management. The central body for risk management is the Risk Board, which meets at least quarterly.<br> It discusses key questions and topics relating to risk management and advises the Management Board on these matters. In addition to the Management Board, its members are the heads of the Risk Controlling Department and the Cyber Security & Non-Financial Risk Department, as well as the heads of the Credit, Finance, Treasury and Promotional activity divisions. The Financial Board addresses Rentenbank's financial position, while the Market Board deals with promotional activity topics and treasury topics. The Sustainability Board addresses the requirements and the operational and strategic implications of sustainability for Rentenbank.

To ensure a robust RMS, Rentenbank has organised its Internal Control System (ICS) within a clear three-lines-of-defence structure. The first line of defence consists of primary and key controls in the operational units. The second line of defence comprises the Regulatory Working Group (*Arbeitskreis Regulatorische Themen*; ART), the special MaRisk functions Risk Controlling and Compliance, the ICT risk control function under the Digital Operational Resilience Act (DORA), the Chief Information Security Officer (CISO), the Central Outsourcing Officer, the officers responsible for anti-money laundering and other criminal offences, and the Data Protection Officer. Internal Audit constitutes the third line of defence.

Responsibility for the Risk Controlling function under MaRisk (*Mindestanforderungen an das Risikomanagement*; minimum requirements for risk management) lies with the Chief Risk Officer (CRO). The Risk Controlling Department performs key tasks of the Risk Controlling function. These include supporting senior management in all matters of risk policy, in particular in the development and implementation of the risk strategy, regularly monitoring limits within risk-bearing capacity, risk reporting, the daily valuation of financial instruments and market conformity checks, as well as risk assessment in the New Products Process (NPP). The Cyber Security & Non-Financial Risks (CNR) Department, newly established in 2025, performs a substantial part of these tasks in relation to non-financial risks.

In accordance with the requirements of MaRisk, risk monitoring and reporting are carried out independently of the Promotional activity and Treasury market divisions.

Landwirtschaftliche Rentenbank Annual Report 2025 26

The back-office function is performed by the Credit division, which provides the independent second vote for lending decisions. In addition, this division monitors compliance with counterparty risk limits as part of credit portfolio management.

Rentenbank's Compliance function reports directly to, and is directly subordinate to, the Management Board. In addition, a central office has been established for the prevention of money laundering, terrorist financing and other criminal offences. The Anti-Money Laundering Officer is organisationally directly subordinate to the Management Board and reports directly to it.

The CNR Department is also responsible for performing and ensuring all matters relating to information security. The head of the CNR Department performs the roles of ICT risk control function, Central Outsourcing Officer and Chief Information Security Officer.

Internal Audit reviews and evaluates, on a risk-oriented and process-independent basis, the propriety of activities and processes as well as the adequacy and effectiveness of the RMS and the ICS. It reports directly to the Management Board and performs its duties autonomously and independently.

Landwirtschaftliche Rentenbank Annual Report 2025 27

**Business and risk strategy**

Rentenbank's risk strategy is derived from, and is consistent with, the market-oriented business strategy and comprises, in addition to the overarching cross-risk strategy, sub-strategies relating to individual risk types as well as the Venture Capital Policy.

The Risk Appetite Framework comprises all strategies and guidelines, methods, processes, responsibilities, controls, and systems from which the risk appetite is derived, communicated, and monitored. In addition to minimum target values, warning thresholds and limit systems, this also includes appropriate compliance and an appropriate risk culture.

The Risk Appetite Statement describes the extent to which Rentenbank is willing to assume risks and allocate risk coverage potential in order to achieve its strategic objectives. Risk appetite is defined on the basis of quantitative requirements and qualitative statements. These requirements are specified through the determination of limits and warning thresholds within the framework of risk-bearing capacity.

![](tm2612034d1_ex99-eimg002.jpg)

<br> Through the risk strategy, the Risk Appetite Framework and the Risk Appetite Statement, the Management Board defines the key parameters for risk management.

The credit risk strategy is shaped by the promotional mandate. To promote the agricultural sector and rural areas, financial resources are, in principle, provided only to banks established in the Federal Republic of Germany or another EU country that conduct business with agricultural enterprises, companies operating in upstream and downstream sectors, or companies active in rural areas. In this context, special promotional loans are restricted to Germany as the location for investment.

Landwirtschaftliche Rentenbank Annual Report 2025 28

In addition, Rentenbank may enter into participations, acquire interests in venture capital funds and provide debt capital to German federal states and German municipalities in the form of promissory notes, registered securities or bearer securities.

Accordingly, lending business is limited to the refinancing of banks or institutions and financial institutions within the meaning of Article 4 CRR, as well as to the provision of capital to domestic public authorities.

As part of the credit risk strategy, it has been stipulated that lending to companies in the direct lending business may only be undertaken through a subsidiary of Rentenbank. No corresponding new business was concluded in 2025.

Derivatives are used exclusively as hedging instruments and are only entered into with counterparties with whom Rentenbank has concluded a collateral agreement.

Rentenbank's credit risk strategy requires prudent selection of counterparties and products in all business activities. In line with its core competencies and business model, Rentenbank focuses on the banking sector and public-sector borrowers. Rentenbank has a sectoral concentration risk vis-à-vis the banking sector, which arises from its promotional mandate. As an indicator of Rentenbank's risk profile, the average credit quality of the overall credit portfolio – taking product ratings into account – must be at least A+.

The principal objective of the market risk strategy is to avoid risks that could jeopardise net interest income and thus the fulfilment of the promotional mandate. At the same time, market risks are limited and managed from a present-value perspective within the framework of economic risk-bearing capacity. Foreign currency positions are generally closed out.

The objectives of the liquidity risk strategy are to ensure solvency at all times, including under stress conditions, and to optimise the refinancing structure.

Non-financial risks, which include operational and strategic risks, are managed with the objective of preventing losses and thereby ensuring the quality of all operational processes at Rentenbank Compliance with regulatory requirements and the minimisation of reputational risks through appropriate communications management and a code of conduct are also integral components of the risk strategy.

**Risk culture**

Rentenbank's risk culture shapes its self-image in the day-to-day handling of risks. It comprises the totality of the company's norms, attitudes and behaviours with regard to risk awareness, risk appetite and risk management. Rentenbank has defined and established its approach to risk culture. In addition, indicators have been defined to monitor how risk culture is put into practice. Key elements of the risk culture are the autonomous and responsible handling of Rentenbank's risks by all managers and employees within the scope of their assigned responsibilities, as well as the

Landwirtschaftliche Rentenbank Annual Report 2025 29

accountability of all managers and employees for their risk behaviour. An employee survey was used to assess the current state of risk culture and to identify measures for its further improvement.

**Risk inventory**

Through the risk inventory, Rentenbank obtains a structured overview of all risks that may impair its net assets, capital base, results of operations or liquidity position. This also includes risk concentrations within individual risk types and across risk types.

The resulting risk profile forms the basis for the Risk Appetite Statement and for risk measurement, monitoring and management at Rentenbank. In addition, the risk inventory serves to increase risk transparency and thereby supports Rentenbank's risk culture. The risk profile comprises counterparty default risk, market risk, liquidity risk and non-financial risks as the material risk types. Non-financial risks comprise operational risks and strategic risks. Risks arising from changes in the areas of environmental, social and governance (ESG) are also a focus of risk analysis. These are incorporated into the RMS as risk drivers of the various risk types, including through scenario analyses.

In addition, material risks are identified and reported using indicators based on quantitative and qualitative risk characteristics. Further risks are identified in the New Products Process (NPP), in key ICS controls and in day-to-day control and monitoring activities.

**Validation of risk measurement**

A validation framework aligned with regulatory requirements defines the modalities for validating the methods and procedures used to measure the material risk types in Rentenbank's ICAAP and ILAAP.

The methods and procedures are validated at least annually, with independence between method development and validation ensured through an organisational separation. The aim of validation is to critically review, on the basis of quantitative and qualitative analyses, the quality of the methods or models used for risk measurement, as well as their parameters and assumptions. The assessment is performed in accordance with a defined methodology. The validation results are discussed in the Risk Committee.

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**Risk-bearing capacity**

Rentenbank's risk-bearing capacity concept is the central element of the Internal Capital Adequacy Assessment Process (ICAAP) and the basis for the operational implementation of the risk strategy. The objectives of the risk-bearing capacity concept are to ensure the institution's continuation in fulfilling its promotional mandate while complying with regulatory requirements, as well as to safeguard the institution's substance over the long term and to protect creditors against losses from an economic perspective. These objectives are reflected in the two perspectives of the risk-bearing capacity concept, which comprises a normative approach and an economic approach. Risk management processes are designed to meet these objectives and requirements on an equal footing. Monitoring of limits within risk-bearing capacity is supplemented by stress tests. These are reported regularly to the Management Board and discussed there as well as in the Risk Committee.

Normative approach

The management objective of the normative approach is to comply with all minimum regulatory capital requirements and provisions. It is assessed whether the capital base, both on a reporting-date basis and within the multi-year capital planning horizon (covering five years), ensures compliance with all regulatory requirements and thus the institution's continued existence in the baseline scenario and in the adverse scenarios. The capital base should also enable the sustainable pursuit of the business strategy in these scenarios.

The following table shows regulatory own funds under the normative approach at the reporting date compared with the previous year:

---

| | | |
|:---|:---|:---|
|  | **31 December 2025**<br> mEUR | **31 December 2024**<br> mEUR |
| Subscribed capital | 135.0 | 135.0 |
| Retained earnings | 1252.6 | 1233.6 |
| Fund for general banking risks | 3553.5 | 3479.8 |
| Intangible assets | -56.2 | -48.4 |
| Tier 2 capital | 0.0 | 0.0 |
| **Regulatory own funds** | **4884.9** | **4800.0** |

---

The increase in own funds compared with the previous year resulted from an increase in retained earnings and an increase in the fund for general banking risks following the adoption of the 2024 annual financial statements.

Risk-weighted assets (RWA) are shown in the following table:

Landwirtschaftliche Rentenbank Annual Report 2025 31

---

| | | |
|:---|:---|:---|
|  | **Risk amount**<br> **31 December 2025**<br> mEUR | **Risk amount**<br> **31 December 2024**<br>mEUR<br>|
| Credit risk | 13909.6 | 11454.8 |
| CVA charge | 612.1 | 530.5 |
| Operational risk | 487.3 | 544.3 |
| **Total RWA** | **15008.9** | **12529.6** |

---

The expected significant increase in RWA is due to the application of CRR III; the effect on capital ratios is mitigated to some extent by profit retention. Even after application of CRR III, the capital ratios remain well above the regulatory minimum requirements:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting date** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting date** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting date** | &nbsp;&nbsp;&nbsp;&nbsp;**Reporting date** |
| (%) | **Reporting date**<br> **31 December**<br> **2025** | 2026 | &nbsp;&nbsp;&nbsp;&nbsp; Baseline scenario<br> 2027 | &nbsp;&nbsp;&nbsp;&nbsp; 2028 |
| Total capital ratio | &nbsp;&nbsp;32.6 | 33.3 | 33.5 | 33.9 |
| Tier 1 capital ratio | 32.6 | 33.3 | 33.5 | 33.9 |
| Common Equity Tier 1 capital ratio | 32.6 | 33.3 | 33.5 | 33.9 |
| **Leverage ratio** | **11.5** | **10.7** | **11.1** | **11.8** |

---

In 2025, no material impact of the geopolitical crises and Germany's economic stagnation on Rentenbank's risk metrics could be observed. For the baseline scenario of capital planning, it is assumed that the conflicts will persist while the economy recovers slightly. Rentenbank therefore expects the portfolio to develop in a relatively stable manner from a risk perspective in the baseline scenario. This is reflected accordingly in the capital ratios.

Regulatory requirements are met at the reporting date and in the baseline scenario of capital planning at all points in time considered.

In addition to the baseline scenario, various adverse scenarios with significantly negative market-wide and institution-specific developments are analysed in the capital planning. Even taking CRR III effects into account, all regulatory requirements are met at all times.

Landwirtschaftliche Rentenbank Annual Report 2025 32

Economic Approach

The objectives of the economic approach are to safeguard the institution's substance over the long term and to protect creditors against losses from an economic perspective. For this purpose, the economic risk coverage potential is compared with the aggregate risk amount and reviewed both at the reporting date and within the baseline scenario of capital planning.

The risk coverage potential includes hidden reserves and hidden charges from securities and promissory notes of German federal states, including the related hedging transactions, as well as the reserves pursuant to Section 340f HGB. The profit and loss result accrued during the year is taken into account, whereas planned profits that have not yet been realised are not included.

At the reporting date, the risk coverage potential under the economic approach was as follows compared with the previous year:

---

| | | |
|:---|:---|:---|
|  | **31 December 2025**<br> mEUR | **31 December 2024**<br> mEUR |
| Subscribed capital | 135.0 | 135.0 |
| Retained earnings | 1272.1 | 1252.6 |
| Fund for general banking risks | 3576.3 | 3553.5 |
| Hidden charges / reserves | 596.9 | 211.1 |
| **Risk coverage potential** | **5580.3** | **5152.2** |

---

In the economic risk coverage potential, the planned appropriation of the result achieved in 2025 is taken into account. This results in slightly higher figures for retained earnings (+EUR 19.5 million) and for the fund for general banking risks (+EUR 22.8 million), as well as an addition to reserves. The substantial increase in risk coverage potential in 2025 is attributable mainly to higher hidden reserves or lower hidden charges on securities, promissory notes and registered bonds.

Under the economic approach, risks arising from all positions are considered irrespective of their accounting treatment. The risks are calculated on the basis of a confidence level of 99.9% and a time horizon of one year. The risk amounts of the individual risk types are added without taking diversification effects into account and are distributed as follows:

Landwirtschaftliche Rentenbank Annual Report 2025 33

---

| | | |
|:---|:---|:---|
|  | **Risk amount**<br> **31 December 2025**<br> mEUR | **Risk amount**<br> **31 December 2024**<br> mEUR |
| Credit risks | 468.3 | 470.5 |
| Market risks | 1732.8 | 1826.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;of which: interest rate risks | 562.0 | 558.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;of which: CVA risk from derivatives | 43.9 | 39.6 |
| of which: spread and other risks  | 1111.9 | 1213.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;of which: risk buffer | 15.0 | 15.0 |
| Non-financial risks | 101.4 | 93.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;of which: operational risks | 72.8 | 62.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;of which: strategic risks | 28.6 | 31.0 |
| **Total risk** | **2302.5** | **2390.2** |

---

Risk-bearing capacity under the economic approach was ensured at all observation dates in 2025. All limits were complied with. Owing to the higher risk coverage potential and a decline in spread risks, utilisation of risk coverage potential at the reporting date was significantly lower at 41.26% than in the previous year (46.39%).

Stress tests

The purpose of stress tests is to analyse whether Rentenbank's risk-bearing capacity remains ensured even under extraordinary but plausible cross-risk scenarios. For this purpose, a hypothetical scenario (economic downturn) and a historical scenario (financial market crisis followed by the sovereign debt crisis) are simulated. The scenarios consider both market-wide and institution-specific aspects. In doing so, geopolitical tensions and conflicts, as well as the resulting macroeconomic uncertainties – such as volatile energy prices, recurring supply bottlenecks and increased capital market volatility – were taken into account. These developments were translated qualitatively and quantitatively into their potential effects on refinancing costs, credit risks and Rentenbank's capital market environment, so that the key risk impulses of the global environment are adequately reflected in the scenarios.

The key risk parameters underlying the stress scenarios are the deterioration in credit quality, changes in interest rates and increases in credit spreads. In the stress tests, the effects of the stress scenarios are analysed from both the normative and the economic perspective. Under the normative approach, the effects of the scenarios on the income statement and on equity, in particular the effects on risk-weighted assets, are simulated over a three-year horizon. Under the

Landwirtschaftliche Rentenbank Annual Report 2025 34

normative approach, the dominant risk is counterparty default risk, while under the economic approach counterparty default risk and market risk are particularly relevant.

Risk-bearing capacity is ensured under both approaches even in the stress scenarios without recourse to regulatory relief measures relating to capital and liquidity requirements, thereby confirming Rentenbank's comfortable capital position. In addition to these stress scenarios, a reverse stress test is used to examine which events would cause risk-bearing capacity no longer to be ensured. Furthermore, the effects of sustainability risks are examined in various scenarios (see separate section).

**Credit risks**

Definition

Credit risk is the risk that a counterparty will fail to meet its payment obligations, or will meet them only in part, as well as the risk of valuation losses resulting from rating downgrades. A distinction is made between the following risk sub-types: default risk, migration risk and country risk.

Lending business is largely limited to the refinancing of banks or institutions and financial institutions within the meaning of Article 4 of the CRR, as well as other interbank business. In the case of special promotional loans, the default risk relating to the ultimate borrower lies with the local bank. In addition, German federal states, districts and municipalities are refinanced.

Risk assessment and management

The key risk parameters used to determine credit risk are probability of default, loss given default, exposure at default and the correlations between counterparties, which are used in the credit portfolio model to simulate simultaneous defaults by counterparties.

Probability of default is derived from the credit assessment of counterparties. The credit assessment is carried out using an internal risk rating system. Under this procedure, individual counterparties or types of business are assigned to one of 20 rating categories. The best ten rating categories, from AAA to BBB-, are reserved for counterparties with low risks ("investment grade"). In addition, the seven rating categories from BB+ to C are intended for latent or elevated latent risks, while the three rating classes from DDD to D are intended for non-performing loans and defaulted counterparties.

The credit assessment of counterparties is reviewed at least annually on the basis of an evaluation of their annual financial statements and an analysis of their economic circumstances. In doing so, account is taken of financial ratios, qualitative characteristics, shareholder background and further support factors, such as membership of an institutional protection scheme or government liability mechanisms. The country risk of the counterparty's country of domicile is also taken into account in determining credit quality. For certain products, such as German mortgage bonds (*Pfandbriefe*), the

Landwirtschaftliche Rentenbank Annual Report 2025 35

associated collateral or cover assets are taken into account as an additional criterion for determining the product rating, alongside the relevant national statutory provisions. If current information becomes available regarding negative financial data or a weakening of a counterparty's economic outlook, the credit rating is reviewed and adjusted if necessary.

Loss given default quantifies the proportion of an exposure that remains irrecoverable after a counterparty has defaulted and the collateral provided has been realised. To quantify counterparty credit risks, Rentenbank uses product-specific or business-type-specific loss given default parameters, which are determined using analytical and expert-based methods. In particular, the recovery chain of special promotional loans granted under the so-called on-lending procedure is taken into account in the assessment and parameterisation of loss given default for special promotional loans. In addition, Rentenbank relies on external data sources for certain types of business.

Exposure at default corresponds to the reporting-date balance plus off-balance-sheet transactions of individual counterparties. This corresponds to the residual amount of the receivable or the market value. For derivatives, exposure is determined as the amount of the exposure plus an add-on for market value fluctuations, taking contractual netting and posted and received collateral (cash collateral) into account.

Credit risk under the economic approach (credit value at risk) is calculated using a credit portfolio model, taking into account correlations between counterparties and including migration risks.

The method described makes it possible to assess, monitor and manage risks within the meaning of MaRisk. Negative developments and portfolio concentrations can thus be identified at an early stage and countermeasures initiated.

Limitation and monitoring

The overall credit ceiling for all counterparty default risk limits, as well as an unsecured ceiling, are set by the Management Board and thereby limit counterparty default risks. Concentration risks within Rentenbank are managed and limited at several levels through various targeted approaches. Country lending limits and currency transfer limits are also in place to limit risk.

A limit system manages the amount and structure of all counterparty default risks. Internal limits are recorded for all borrowers, issuers and counterparties and are, where appropriate, broken down by product and maturity. Rentenbank's risk classification system constitutes the central basis for decisions on limit allocation. In addition, specific minimum credit qualities apply to certain business types or limit types.

The limitation of credit risks within the framework of risk-bearing capacity is based on the credit value at risk determined in the credit portfolio model.

Landwirtschaftliche Rentenbank Annual Report 2025 36

In addition, risk indicators provide early signals of a possible increase in risk or shifts in risk within the portfolio. Warning thresholds ensure that higher levels of limit utilisation are identified at an early stage and that appropriate courses of action can be taken.

Limits are monitored on a daily basis. Limit overruns are immediately reported to the Management Board.

Credit risks are therefore managed, monitored and reported at the level of individual transactions, at the level of the borrowers and the group of connected clients, at country level and at the level of the overall credit portfolio.

Portfolio overview

For more than 90% of the risk exposures, collateral exists in the form of assignments of the refinanced receivables of the ultimate borrowers and state liability mechanisms, or the exposures consist of collateralised products such as German mortgage bonds (*Pfandbriefe*) or covered bonds. Unsecured risk exposures relate predominantly to receivables from credit institutions belonging to domestic liability schemes.

The total credit portfolio of EUR 88 billion (EUR 92 billion) comprises the nominal amounts of the risk exposures denominated in euros. These include special promotional loans with assignment of the refinanced receivables of the ultimate borrowers, state-guaranteed special promotional loans, registered bonds, promissory notes and securities, money market and derivative transactions, participations, venture capital investments and all externally committed credit lines, but not lending from the Federal Government's Special-Purpose Fund. In the case of participations, the risk exposures of Rentenbank's direct participations are included.

The conclusion of financial instruments in derivatives business is permissible exclusively as a hedging instrument on the basis of a netting and collateral agreement.

Aggregation in the following three presentations is based on the counterparty's country of domicile or at the level of the legally independent counterparty, without taking group relationships into account. Allocation to the rating categories is based on product ratings. The amounts shown are based on nominal values.

Landwirtschaftliche Rentenbank Annual Report 2025 37

More than 90% of the portfolio is collateralised and distributed as follows:

**Credit Rating Categories** (in euro billions)

![](tm2612034d1_ex99-eimg012.jpg)

**Country Groups** (in euro billions)

![](tm2612034d1_ex99-eimg013.jpg)

**Counterparty Groups** (in euro billions)

![](tm2612034d1_ex99-eimg014.jpg)

Landwirtschaftliche Rentenbank Annual Report 2025 38

Rentenbank has no exposure to Russian, Belarusian or Ukrainian counterparties or their subsidiaries. The exposure of Rentenbank's counterparties in Russia and/or Ukraine is limited. The direct effects of the Russia-Ukraine crisis on the business development of the institutions concerned are therefore manageable overall. Rentenbank is also monitoring domestic political developments in the United States, the ongoing trade conflicts, particularly with China, and regional hotspots (Gaza, Iran, Venezuela). At present, Rentenbank sees no direct effects on its banking counterparties.

Loan loss provisions

**Specific valuation provision** 

Each month, an assessment is made as to whether there is objective evidence that not all interest and principal payments can be made in accordance with the contractual terms. For accounting purposes, the need to recognise a specific valuation allowance for a receivable is assessed on the basis of the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;• internal credit assessment in the non-investment-grade category,

&nbsp;&nbsp;&nbsp;&nbsp;• non-performing, forborne or restructured exposures,

&nbsp;&nbsp;&nbsp;&nbsp;• material deterioration in the counterparty's credit quality,

&nbsp;&nbsp;&nbsp;&nbsp;• material deterioration in the credit quality of the counterparty's country of domicile.

As in the previous year, there was no need to recognise specific valuation allowances at the reporting date.

**Valuation adjustments for venture capital participations** 

At Rentenbank, the venture capital funds are classified as fixed assets. No valuation adjustments were required in 2025.

**General valuation allowance** 

General valuation allowances are recognised for latent credit risks, the amount of which is calculated on the basis of probability of default and loss given default.

General valuation allowances for receivables, securities and irrevocable loan commitments amount to EUR 2.9 million and were therefore slightly below the previous year's level (EUR 3.1 million).

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**Market risks**

Definition

Market risk is the potential loss arising from changes in market data. It comprises interest rate risks, CVA risks from derivatives, and spread and other market risks. The latter include currency risks and volatility risks. Spread risks are differentiated into credit spread risks, cross-currency basis spread risks and tenor basis spread risks.

Risk assessment and management

**Interest rate risks** 

Interest rate risks are measured from a present-value perspective and from an earnings perspective by shifting yield curves.

Present-value calculation and monitoring are carried out daily for the "Treasury Management" and "Promotional Activity" segments and monthly at overall bank level. The earnings-based measurement of interest rate risks is performed in the stress scenarios under the normative approach over a three-year horizon on the basis of the gap structure in the interest rate scenarios considered.

In addition, six supervisory interest rate shock scenarios prescribed by the supervisory authorities are calculated. At the reporting date, the supervisory interest rate coefficient (Supervisory Outlier Test [SOT]) based on Economic Value of Equity [EVE]) for rising interest rates was 10.4%. Rentenbank's coefficient (SOT NII) for falling interest rates was 0.4%.

Generating material income through the assumption of interest rate risk is not one of Rentenbank's strategic objectives. Interest rate risk is limited through the use of derivatives on the basis of micro hedges or macro hedges, the latter for special promotional loans.

**Spread risks** 

Spread risks are calculated using a value-at-risk (VaR) model based on historical simulation. Credit spread risks for securities, promissory notes and all registered bonds, as well as basis spread risks, are quantified and limited on this basis. Credit spread risks are managed on the basis of the buy-and-hold strategy, in particular through the requirements of the credit risk strategy.

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**Other market risks** 

Even with closed foreign currency positions, the market values of the underlying transactions and hedging transactions may differ because of different valuation parameters, primarily spreads. When translated into euros, this results in exchange rate-related present-value differences, which are taken into account as currency risk. Apart from immaterial positions in clearing accounts, there are no open foreign currency positions. Volatility risk describes the risk that the value of an option changes as a result of changes in volatility. Rentenbank holds only interest rate-related options, and embedded options are also taken into account, particularly in the case of loans with termination rights. Currency and volatility risks are measured and limited through scenario-based changes in exchange rates and in cap/floor and swaption volatilities.

Other market risks, such as equity price risks and commodity risks, are not relevant due to the business model.

**CVA risk** 

CVA risk is the risk of potential fair value losses on derivatives resulting from a deterioration in the counterparty's credit quality. In addition to probability of default, which is derived from credit default swaps, the calculation also incorporates counterparties' loss given default and potential future exposure at the level of the netting pools. CVA risk is limited through the conclusion of collateral agreements and through limits.

**Risk buffer** 

A risk buffer is used to additionally take account of imprecision and simplifications in risk modelling.

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**Liquidity risks**

Definition

Liquidity risk is the risk of being unable, or only partially able, to meet current or future payment obligations. This also includes intraday liquidity risk, market liquidity risk and refinancing cost risk.

Refinancing cost risk is the risk that future refinancing funds can only be raised on unexpectedly less favourable cost terms or that surplus liquidity has to be invested on unexpectedly less favourable terms.

Risk assessment and management

The objectives of liquidity management are to ensure solvency at all times, even under stress conditions, to optimise the refinancing structure and to coordinate own issuances in the money and capital markets. For this purpose, Rentenbank has implemented an appropriate Internal Liquidity Adequacy Assessment Process (ILAAP).

Within the ILAAP, liquidity risks are backed by liquidity coverage potential or liquid assets. The starting point for measuring liquidity risk is cumulative net liquidity demand, which is also assessed under various stress scenarios. Cumulative net liquidity demand is compared with the liquidity coverage potential available at the relevant point in time (liquidity buffer). Utilisation is assessed across short-, medium- and long-term horizons and is subject to limits. In accordance with MaRisk, the potential utilisation of liquidity coverage potential is explicitly determined for periods of one week and one month.

The stress scenarios are used to assess the impact of unexpected, extraordinary events on the liquidity position and on market liquidity risk. The scenarios comprise a market-wide scenario involving a decline in securities prices (market liquidity) as well as liquidity outflows resulting from cash collateral to be posted. In addition, an idiosyncratic scenario is simulated that assumes the simultaneous drawdown of all irrevocable loan commitments and the default of significant borrowers. The scenario mix simulates the cumulative occurrence of the liquidity stress scenarios. Event-driven liquidity stress tests are also performed where risk-relevant events occur. The composition and appropriate diversification of liquidity coverage potential are reviewed as part of validation.

In addition, the regulatory liquidity ratios, the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR), are calculated and limited.

The scenario mix has been defined as the management-relevant scenario and, through a traffic-light system, ensures the minimum survival horizon.

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Short-term as well as medium- and long-term liquidity limits are monitored and reported on a daily basis.

The actual liquidity position and utilisation of the liquidity buffer, as well as a 90-day forecast of net liquidity demand in accordance with the LCR, are monitored daily. The remaining internal and regulatory metrics are calculated and monitored monthly.

Interbank funds, reverse repos under Eurex GC Pooling, ECP issuances and open market operations with Deutsche Bundesbank are available as instruments for managing the short-term liquidity position. In addition, securities may be purchased for liquidity management purposes. Funding with maturities of up to two years may be raised through the Euro Medium-Term Note Programme (EMTN programme), promissory notes, global bonds and domestic capital market instruments. Bonds issued by Rentenbank are classified in the EU as "liquid assets" in accordance with the LCR. Rentenbank bonds may also be held as high-quality liquid assets in other jurisdictions (for example, the United States and Canada).

As in the previous year, liquidity was secured at all observation dates during the reporting year, including under stress assumptions. All liquidity limits and regulatory liquidity ratios were complied with by a comfortable margin. The average LCR was 3.85 (4.15) and the average NSFR was 1.30 (1.32).

Funding cost risks are measured as part of the risk inventory and validation process. During the reporting year, they remained below the internally defined materiality threshold.

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**Non-financial risks**

Definition

Non-financial risks comprise operational risks and strategic risks.

Operational risks arise from inadequate or failed systems and processes, from human misconduct or from external events. They also include legal risks, compliance risks, outsourcing risks, IT risks, information security risks, personnel risks, model risks, project risks and event-related or environmental risks.

Strategic risks comprise the risk sub-types business/strategic risks, reputational risks and pension risks.

Business/strategic risk describes the risk that Rentenbank's business-strategic objectives are not achieved as a result of its business policy positioning or adverse framework conditions, and that this has a negative effect on its net assets and earnings position.

Reputational risk is the risk of losses arising from a deterioration in the way Rentenbank is perceived by relevant internal and external stakeholders, resulting in adverse economic effects or a loss of confidence in Rentenbank.

Pension risk refers to the risk of pension provisions being measured inadequately.

Risk assessment and management

From an economic perspective, non-financial risks are quantified using a simulation model (value at risk). The data basis consists of the risk estimates from self-assessments carried out by process owners, the risk analyses of other organisational units and the historical loss events arising from operational risks. The risk model allows a detailed analysis of individual risks and risk drivers as well as the simulation of scenarios.

All loss events and near misses at Rentenbank are recorded decentrally in a loss event database by operational risk officers. Risk Controlling analyses and aggregates the loss events and further develops the methodology of the instrumentarium.

In the self-assessments, material operational risk scenarios in individual business processes are analysed and assessed on a risk-oriented basis. Risk-reducing measures are also determined in this context.

The Risk Controlling Department centrally aggregates and analyses all non-financial risks. It is responsible for the use of relevant instruments and the development of methods for the identification, assessment, management and communication of risks. Non-financial risks are managed by the respective organisational units.

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The Cyber Security & Non-Financial Risk Department monitors information security risks, third-party service provider risks and risks relating to business continuity management. To this end, processes and methods for the identification, assessment, management and monitoring of risks have been established.

The Legal & Committees Department manages and monitors legal risk. It informs the Management Board, both on an ad hoc basis and regularly in the form of half-yearly reports, about pending or threatened legal disputes. Rentenbank reduces legal risks arising from the conclusion of transactions by using largely standardised contracts. For this purpose, the Legal Department is involved at an early stage in decision-making, and material projects must be coordinated with the Legal & Committees division. Legal disputes are recorded in the loss event database without delay. A designated risk indicator is monitored for the early identification of risk.

Regulatory risk, as a component of compliance risk, is managed by the Compliance function and the ART through the active monitoring of regulatory projects and other legislative initiatives affecting Rentenbank, as well as through the identification of potential consequences for Rentenbank.

On the basis of a materiality and risk analysis, compliance-related risks are identified and it is analysed whether general and institution-specific requirements for an effective organisation are being met. The same applies to risks arising from money laundering, terrorist financing and criminal offences that could endanger Rentenbank's assets. Organisational measures are derived from the risks identified in order to optimise risk prevention.

In particular, compliance with due diligence obligations and the identification of counterparties (know-your-customer principle) are important elements of anti-money laundering prevention. The necessary procedures and processes for this purpose have been established, and any suspicious cases are reported without delay by the Anti-Money Laundering Officer to the Financial Intelligence Unit (FIU). In 2025, there were no suspicious cases relating to money laundering or terrorist financing, nor were any other criminal offences identified.

The risks associated with outsourcing and other external sourcing of IT services are captured under operational risks. Rentenbank has established the function of a Central Outsourcing Officer, who is supported by the Central Outsourcing Management Department. Outsourcing monitoring is carried out on a decentralised basis. Central outsourcing management also includes the management and monitoring of the outsourcing portfolio. On the basis of a standardized risk analysis, a distinction is made between material and non-material outsourcing arrangements. Special requirements apply to material outsourcing arrangements, in particular with regard to contracts, management and monitoring, and reporting. Third-party service provider risks are integrated into operational risk management and presented transparently.

To protect data, systems, networks and the site, Rentenbank has implemented an Information Security Management System (ISMS). The Cyber Security & Non-Financial Risk Department monitors compliance with the requirements set out in the ISMS regarding the confidentiality, availability and integrity of information. Employees receive regular information security training and are made

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aware of risks through various channels. Information security risks are integrated into operational risk management and presented transparently. This also includes risks arising from threats related to cyber risks. To this end, penetration tests are carried out regularly by external service providers.

For emergency or crisis situations, Rentenbank's Business Continuity Management Department has established preventive and reactive measures for time-critical business processes. Emergency manuals, business continuity plans and recovery plans govern the handling of operational disruptions. Rentenbank reviews and monitors the effectiveness of these plans on the basis of test and exercise plans. Rentenbank reviews and monitors the effectiveness of these plans on the basis of test and exercise plans.

The Code of Conduct and professional external corporate communications contribute to mitigating reputational risks.

For the measurement of pension provisions, parameters such as interest rates, inflation and life expectancy are used on the basis of an external actuarial report. The related interest rate risks are taken into account within interest rate risk in the banking book (IRRBB).

Non-financial risks are limited within economic risk-bearing capacity, separately for operational risks and strategic risks.

The loss events identified during the reporting year, the findings from the self-assessments, the risk analyses of the organisational units and the monitoring of early warning indicators do not indicate any risks that could endanger Rentenbank's continued existence.

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**ESG risks**

ESG risks in the areas of climate and the environment are divided into physical risks and transition risks. Physical risks arise both in relation to individual extreme weather events and their consequences and with regard to long-term changes in climatic and ecological conditions. Transition risks arise in connection with the transition to a low-carbon economy.

At Rentenbank, ESG risks are not viewed as a separate risk type, but as risk drivers of the traditional risk types. Starting from a long list of possible ESG risk drivers, those relevant to Rentenbank were identified. In identifying these ESG risk drivers, vulnerability, financial impact and the possible transmission channel were taken into account.

As part of its promotional activities, Rentenbank provides refinancing for local banks in respect of its special promotional loans. In this context, the local bank bears the default risk of the ultimate borrower. Rentenbank's customers are therefore classified almost exclusively as banks or domestic public-sector institutions. Accordingly, these are not direct investments in the agriculture and forestry sector.

Against the background of this classification, Rentenbank analyses the potential effects of sustainability risks. Within the existing credit assessment procedures, individual ESG aspects are already taken into account. Since 2023, Rentenbank has used controversy screening as part of credit assessment. In 2024, an ESG scoring system was introduced.

Since 2020, various ESG scenarios relating to future developments, with a focus on climate and environmental risks, have been considered, and the possible effects of climate change on Rentenbank's capital and risk position have been examined. The ESG scenarios were developed largely on the basis of currently available information and assessments (including those of the Network for Greening the Financial System). The scenarios considered are intended to reflect Rentenbank's physical and transition risk drivers as broadly as possible. For these scenarios, quantitative estimates of the short- and long-term effects were made, the impact of which on Rentenbank's risk metrics is expected to be limited. The scenarios are continuously refined on the basis of new insights, in particular those provided by the NGFS. In addition, developments in the CO₂ price are monitored as a risk indicator.

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**Financial reporting process**

The purpose of the financial reporting process is to map the coding and processing of a business transaction through to the preparation of the required annual financial statements.

The objective of the accounting-related ICS/RMS is to ensure compliance with accounting standards and regulations and to safeguard proper accounting.

Rentenbank prepares its financial statements in accordance with the provisions of the German Commercial Code (HGB) and the German Regulation on the Accounting of Banks and Financial Services Institutions (*Verordnung über die Rechnungslegung der Kreditinstitute, Finanzdienstleistungsinstitute und Wertpapierinstitute*; RechKredV).

These rules are documented in manuals and work instructions. The Finance division monitors them regularly and adapts them to changes in legal, regulatory and procedural requirements. The involvement of the Finance division in the New Products Process ensures that new products are properly reflected for accounting purposes.

The documentation of the accounting process complies with the principles of proper accounting (*Grundsätze ordnungsgemäßer Buchführung*; GoB) and is understandable to knowledgeable third parties. The statutory retention periods are observed when storing the relevant documents.

The functions of the organisational units that are material to the accounting process are clearly segregated. Separate sub-ledgers are assigned to, and monitored by, the respective organisational units for money market business, loans, securities and liabilities accounting. The data from the sub-ledgers are transferred to the general ledger via automated interfaces. The Finance division is responsible for accounting, defining posting rules, the posting logic, the control of posting programs and the administration of the financial accounting system.

Rentenbank uses standard software for financial reporting. The allocation of task-specific access rights protects the financial reporting process against unauthorised access. Plausibility checks are performed on a regular basis. In addition, the four-eyes principle, standardised reconciliation routines and budget versus actual comparisons in the finance system are intended to ensure that errors are identified and corrected promptly. At the same time, these measures serve to ensure the correct recognition, presentation and measurement of assets and liabilities.

The effectiveness of the accounting-related ICS/RMS is monitored through regular process-independent audits by Internal Audit.

Within the framework of the management information system, reporting to those responsible is timely, quality-assured and relevant. The Supervisory Board and its committees are regularly informed by the Management Board about current business developments. In addition, they are informed promptly about special events.

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**Annual financial <br> statements**

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**Balance sheet of Landwirtschaftliche Rentenbank at 31 December 2025** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assets** | **Assets** |  |  |  |  |
|  |  |  |  | **31/12/2025** | **31/12/2024** |
|  |  | **Note** | **mEUR** | **mEUR** | **mEUR** |
| **1.** | **Cash reserve** |  |  |  |  |
|  | a) Cash on hand |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  | b) Balances with central banks |  | &nbsp;&nbsp;&nbsp;&nbsp;44.5 |  | &nbsp;&nbsp;&nbsp;&nbsp;56.2 |
|  | Deutsche Bundesbank mEUR 44.5 (PY: mEUR 56.1) |  |  | **44.5** | &nbsp;&nbsp;&nbsp;&nbsp;56.2 |
| **2.** | **Loans and advances to banks** | **1/17** |  |  |  |
|  | a) Payable on demand |  | 1973.7 |  | 9081.4 |
|  | b) Other loans and receivables |  | 55853.8 |  | 56534.0 |
|  |  |  |  | **57827.5** | 65615.4 |
| **3.** | **Loans and advances to customers** | **2/20** |  |  |  |
|  | of which: |  |  |  |  |
|  | Secured by mortgages mEUR – (PY: mEUR –) |  |  |  |  |
|  | Municipal loans mEUR 7,003.1 (PY: mEUR 6,980.1) |  |  | **7100.8** | 7003.2 |
| **4.** | **Bonds and other fixed-income securities** | **3/7/17** |  |  |  |
|  | a) Commercial paper |  |  |  |  |
|  | aa) Other issuers |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;50.4 |
|  | of which: |  |  |  |  |
|  | eligible as collateral with Deutsche Bundesbank |  |  |  |  |
|  | mEUR – (PY: mEUR –) |  |  |  |  |
|  | Bonds and notes |  |  |  |  |
|  | ba) public-sector issuers |  | 1610.3 |  | &nbsp;&nbsp;&nbsp;&nbsp;977.5 |
|  | of which: |  |  |  |  |
|  | Eligible as collateral with Deutsche Bundesbank |  |  |  |  |
|  | mEUR 1,481.2 (PY: mEUR 848.4) |  |  |  |  |
|  | bb) Other issuers |  | 17338.7 |  | 15714.7 |
|  | of which: |  |  |  |  |
|  | Eligible as collateral with Deutsche Bundesbank |  |  |  |  |
|  | mEUR 15,318.2 (PY: mEUR 13,367.6) |  |  | **18949.0** | 16742.6 |
| **5.** | **Shares and other non-fixed income securities** | **4/7** |  | **46.7** | &nbsp;&nbsp;&nbsp;&nbsp;33.2 |
| **6.** | **Equity interests** | **5/7** |  |  |  |
|  | of which: |  |  |  |  |
|  | in banks: mEUR 321.9 (PY: mEUR 321.9) |  |  |  |  |
|  | in financial services institutions: mEUR – (PY: mEUR –)  |  |  |  |  |
|  | in investments firms: mEUR – (PY: mEUR –) |  |  | **327.9** | &nbsp;&nbsp;&nbsp;&nbsp;327.9 |
| **7.** | **Shares in affiliated companies** | **5/7** |  |  |  |
|  | of which: |  |  |  |  |
|  | in banks: mEUR – (PY: mEUR –) |  |  |  |  |
|  | in financial services institutions: mEUR – (PY: mEUR –) |  |  |  |  |
|  | in investment firms: mEUR – (PY: mEUR –) |  |  | **49.6** | &nbsp;&nbsp;&nbsp;&nbsp;49.6 |
| **8.** | **Trust assets** | **6** |  |  |  |
|  | of which: |  |  |  |  |
|  | Trust loans: mEUR 178.3 (PY: mEUR 168.5) |  |  | **178.3** | &nbsp;&nbsp;&nbsp;&nbsp;168.5 |
| **9.** | **Intangible assets** | **7** |  |  |  |
|  | a) Purchased concessions, industrial property rights and similar<br> rights, and licenses to such rights |  |  | **41.6**<br>| 36.5<br>|
| **10.** | **Property and equipment** | **7** |  | **91.7** | &nbsp;&nbsp;&nbsp;&nbsp;80.1 |
| **11.** | **Other assets** | **8** |  | **3812.1** | 2426.4 |
| **12.** | **Prepaid expenses** | **9/17** |  |  |  |
|  | a) From issuing and lending business |  | 1751.6 |  | 2114.8 |
|  | b) Other |  | &nbsp;&nbsp;&nbsp;&nbsp;249.4 |  | &nbsp;&nbsp;&nbsp;&nbsp;330.6 |
|  |  |  |  | **2001.0** | 2445.4 |
| **Total assets** | **Total assets** |  |  | **90470.7** | 94985.0 |

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Landwirtschaftliche Rentenbank Annual Report 2025 50

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Liabilities and equity** | **Liabilities and equity** | | | | | |
|  | | <br>**Note** | <br> **mEUR** | <br> **mEUR** | **31/12/2025**<br>**mEUR** | **31/12/2024**<br> **mEUR** |
| **1.** | **Liabilities to banks** | **10** |  |  |  |  |
|  a) | Payable on demand |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.2 |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  b) | With agreed term or notice period |  |  | &nbsp;&nbsp;&nbsp;&nbsp;814.1 |  | 1528.3 |
|  |  |  |  |  | **814.3** | 1528.3 |
| **2.** | **Liabilities to customers** | **11/17** |  |  |  |  |
|  a) | Other liabilities |  |  |  |  |  |
|  aa) | Payable on demand |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.1 |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  ab) | With agreed term or notice period |  |  | 1497.3 |  | 1490.4 |
|  |  |  |  |  | **1497.4** | 1490.4 |
| **3.** | **Securitised liabilities** | **12/17/20** |  |  |  |  |
|  a) | Debt securities issued |  |  |  | **80523.4** | 83752.3 |
| **4.** | **Trust liabilities** | **13** |  |  |  |  |
|  | of which: |  |  |  |  |  |
|  | Trust loans: mEUR 178.3 (PY: mEUR 168.5) |  |  |  | **178.3** | &nbsp;&nbsp;&nbsp;&nbsp;168.5 |
| **5.** | **Other liabilities** | **14** |  |  | **142.0** | &nbsp;&nbsp;&nbsp;&nbsp;351.7 |
| **6.** | **Deferred income** | **15/17** |  |  |  |  |
|  a) | From issuing and lending business |  |  | &nbsp;&nbsp;&nbsp;&nbsp;231.2 |  | &nbsp;&nbsp;&nbsp;&nbsp;310.9 |
|  b) | Other |  |  | 1720.9 |  | 2081.1 |
|  |  |  |  |  | **1952.1** | 2392.0 |
| **7.** | **Provisions** | **16** |  |  |  |  |
|  a) | Provisions for pensions and similar obligations |  |  | &nbsp;&nbsp;&nbsp;&nbsp;154.2 |  | &nbsp;&nbsp;&nbsp;&nbsp;153.7 |
|  b) | Other provisions |  |  | &nbsp;&nbsp;&nbsp;&nbsp;206.1 |  | &nbsp;&nbsp;&nbsp;&nbsp;188.0 |
|  |  |  |  |  | **360.3** | &nbsp;&nbsp;&nbsp;&nbsp;341.7 |
| **8.** | **Fund for general banking risk** |  |  |  | **3576.3** | 3553.5 |
| **9.** | **Equity** |  |  |  |  |  |
|  a) | Subscribed capital |  |  | &nbsp;&nbsp;&nbsp;&nbsp;135.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;135.0 |
|  b) | Retained earnings |  |  |  |  |  |
|  ba) | Principal reserve pursuant to Section 2 (2) of Rentenbank's Governing Law |  | 1252.6 |  |  | 1233.6 |
|  | Allocations from guarantee reserve |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  | Allocations from net income |  | &nbsp;&nbsp;&nbsp;&nbsp;19.5 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;19.0 |
|  |  |  |  | 1272.1 |  | 1252.6 |
|  bb) | Guarantee reserve pursuant to Section 2 (3) of |  |  |  |  |  |
|  | Rentenbank's Governing Law |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  | Withdrawals pursuant to Section 2 (3) of Rentenbank's Governing Law |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;0.0 |
|  c) | Distributable profit |  |  | &nbsp;&nbsp;&nbsp;&nbsp;19.5 |  | &nbsp;&nbsp;&nbsp;&nbsp;19.0 |
|  |  |  |  |  | **1426.6** | 1406.6 |
| **Total liabilities and equity** | **Total liabilities and equity** |  |  |  | **90470.7** | 94985.0 |
| **1.** | **Contingent liabilities** | **18** |  |  |  |  |
|  a) | Liabilities from guarantees |  |  |  |  |  |
|  | and indemnity agreements |  |  |  | **9.9** | &nbsp;&nbsp;&nbsp;&nbsp;17.0 |
| **2.** | **Other commitments** | **19** |  |  |  |  |
|  a) | Irrevocable loan commitments |  |  |  | **1909.4** | &nbsp;&nbsp;&nbsp;&nbsp;589.9 |

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Landwirtschaftliche Rentenbank Annual Report 2025 51

**Income statement of Landwirtschaftliche Rentenbank**

**for the period from 1 January to 31 December 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | <br>**Note** | **2025**<br>**mEUR** | **2025**<br>**mEUR** | **2025**<br>**mEUR** | **2024**<br>**mEUR** |
| **1.** | **Interest income from** | **21** |  |  |  |  |
|  a) | Lending and money market transactions |  | &nbsp;&nbsp;&nbsp;&nbsp;2482.6 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;3503.6 |
|  b) | Fixed-income securities |  |  |  |  |  |
|  | and debt register claims |  | &nbsp;&nbsp;&nbsp;&nbsp;424.4 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;346.0 |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;2907.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;3849.6 |
|  | less negative interest: mEUR 2.3 |  |  |  |  | (2.9) |
| **2.** | **Interest expenses** | **22** |  | &nbsp;&nbsp;&nbsp;&nbsp;2688.8 |  | &nbsp;&nbsp;&nbsp;&nbsp;3572.7 |
|  |  |  |  |  | **218.2** | &nbsp;&nbsp;&nbsp;&nbsp;276.9 |
| **3.** | **Current income from** |  |  |  |  |  |
|  a) | Shares and other non-fixed-income |  |  |  |  |  |
|  | securities |  |  | 0.0 |  | 0.0 |
|  b) | Equity interests |  |  | &nbsp;&nbsp;&nbsp;&nbsp;10.6 |  | &nbsp;&nbsp;&nbsp;&nbsp;10.6 |
|  |  |  |  |  | **10.6** | &nbsp;&nbsp;&nbsp;&nbsp;10.6 |
| **4.** | **Fee and commission income** |  |  | 0.8 |  | 0.6 |
| **5.** | **Fee and commission expenses** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;5.4 |  | &nbsp;&nbsp;&nbsp;&nbsp;5.3 |
|  |  |  |  |  | **- 46** | - 47 |
| **6.** | **Other operating income** | **23** |  |  | **15.6** | &nbsp;&nbsp;&nbsp;&nbsp;16.8 |
| **7.** | **General administrative expenses** |  |  |  |  |  |
|  a) | Personnel expenses |  |  |  |  |  |
|  | aa) Wages and salaries |  | &nbsp;&nbsp;&nbsp;&nbsp;47.2 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;43.1 |
|  | ab) Social security contributions and expenses |  |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for pensions and other employee benefits |  | &nbsp;&nbsp;&nbsp;&nbsp;14.8 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;9.7 |
|  |  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;62.0 |  | &nbsp;&nbsp;&nbsp;&nbsp;52.8 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of which: mEUR 7.1 for pensions |  |  |  |  | (3.1) |
|  b) | Other administrative expenses |  |  | &nbsp;&nbsp;&nbsp;&nbsp;67.7 |  | &nbsp;&nbsp;&nbsp;&nbsp;63.8 |
|  |  |  |  |  | **129.7** | &nbsp;&nbsp;&nbsp;&nbsp;116.6 |
| **8.** | **Depreciation, amortisation and impairments of** |  |  |  |  |  |
|  | **intangible assets as well as property and equipment** |  |  |  | **16.5** | &nbsp;&nbsp;&nbsp;&nbsp;14.2 |
| **9.** | **Other operating expenses** | **24** |  |  | **5.3** | &nbsp;&nbsp;&nbsp;&nbsp;5.5 |
| **10.** | **Write-downs and impairments of loans and advances** |  |  |  |  |  |
|  | **and certain securities and additions to provisions for loan losses** |  |  |  | **24.8** | &nbsp;&nbsp;&nbsp;&nbsp;49.8 |
| **11.** | **Write-downs and impairments of equity interests, shares in affiliated** |  |  |  |  |  |
|  | **companies and securities held as fixed assets** |  |  |  | **0.0** | 0.1 |
| **12.** | **Income from reversals of write-downs and impairments** |  |  |  |  |  |
|  | **of equity interests, shares in affiliated companies and securities** |  |  |  |  |  |
|  | **held as fixed assets** |  |  |  | **0.0** | 0.0 |
| **13.** | **Additions to the fund for general banking risks** |  |  |  | **22.8** | &nbsp;&nbsp;&nbsp;&nbsp;73.7 |
| **14.** | **Profit on ordinary activities** |  |  |  | **40.7** | &nbsp;&nbsp;&nbsp;&nbsp;39.7 |
| **15.** | **Taxes on income and profit** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;1.7 |  | &nbsp;&nbsp;&nbsp;&nbsp;1.6 |
| **16.** | **Other taxes not included in "Other operating expenses"** |  |  | 0.0 |  | 0.1 |
|  |  |  |  |  | **1.7** | &nbsp;&nbsp;&nbsp;&nbsp;1.7 |
| **17.** | **Net income for the year** |  |  |  | **39.0** | &nbsp;&nbsp;&nbsp;&nbsp;38.0 |
| **18.** | **Additions to retained earnings** |  |  |  |  |  |
|  | to principal reserve pursuant to Section 2 (2) of Rentenbank's Governing Law |  |  |  |  |  |
|  | from net income |  |  |  | **19.5** | &nbsp;&nbsp;&nbsp;&nbsp;19.0 |
| **19.** | **Distributable profit** |  |  |  | **19.5** | &nbsp;&nbsp;&nbsp;&nbsp;19.0 |

---

Landwirtschaftliche Rentenbank Annual Report 2025 52

**Cash flow statement as at 31 December 2025**

---

| | | |
|:---|:---|:---|
| | **2025** <br> mEUR | **2024** <br> mEUR |
| Net income/loss for the period | 39.0 | 38.0 |
| Depreciation, amortisation and impairments, and reversal of impairments of loans and advances and fixed assets | 16.5 | 14.2 |
| Increase (+)/decrease (-) in provisions | 18.6 | - 163 |
| Other non-cash expenses/income | 47.6 | 123.8 |
| Other adjustments (net) | 53.3 | 21.9 |
| Increase (-)/decrease (+) in loans and advances to banks | 7763.1 | 1579.1 |
| Increase (-)/decrease (+) in loans and advances to customers | -97.6 | 499.2 |
| Increase (-)/decrease (+) in securities (not held as fixed assets) | 50.4 | - 500 |
| Increase (-)/decrease (+) in other assets from operating activities | -1006.5 | 1611.2 |
| Increase (+)/decrease (-) in liabilities to banks | - 714.0 | - 236.8 |
| Increase (+)/decrease (-) in liabilities to customers | 7.0 | - 344.1 |
| Increase (+)/decrease (-) in securitised liabilities | - 3228.9 | - 2004.2 |
| Increase (+)/decrease (-) in other liabilities from operating activities | - 639.9 | - 254.3 |
| Interest expenses / interest income | - 218.2 | - 276.9 |
| Income tax expenses / income | 1.6 | 1.7 |
| Interest and dividends received | 2919.8 | 3863.2 |
| Interest paid | - 2754.9 | - 3608.2 |
| Income taxes paid | -1.6 | - 1.7 |
| **Cash flow from operating activities** | **2255.3** | **959.8** |
| Proceeds from disposals of financial investments | 2114.8 | 2213.1 |
| Payments for investments in financial investments | - 4329.4 | - 3048.7 |
| Proceeds from disposals of property and equipment | 0.0 | 2.4 |
| Payments for investments in property and equipment | - 13.6 | - 16.0 |
| Proceeds from disposals of intangible assets | 0.0 | 0.0 |
| Payments for investments in intangible assets | - 19.7 | - 17.6 |
| **Cash flow from investing activities** | **- 2247.9** | **- 866.8** |
| Appropriation of distributable profit pursuant to Section 9 of Rentenbank's Governing Law | - 19.0 | - 18.5 |
| Net change in funds from other capital | 0.0 | - 40.0 |
| **Cash flow from financing activities** | **- 19.0** | **- 58.5** |
| Net change in cash and cash equivalents | -11.6 | 34.5 |
| Cash and cash equivalents at beginning of period | 56.1 | 21.6 |
| **Cash and cash equivalents at end of period** | **44.5** | **56.1** |

---

The Statement of Cash Flows shows the changes in cash and cash equivalents for the 2025 and 2024 fiscal years from operating, investing and financing activities. Cash and cash equivalents correspond to the "cash reserve" item reported in the balance sheet.

Landwirtschaftliche Rentenbank Annual Report 2025 53

Cash flows are allocated to operating activities based on the definition of the operating result. Cash flows from investing and financing activities are derived directly from the accounting system. Cash flow from investing activities results from payments for and proceeds from property and equipment, intangible assets and securities classified as fixed assets. Cash flow from financing activities includes payments for regulatory supplementary capital and the distribution of distributable profit.

The Statement of Cash Flows was prepared on the basis of the regulations set out in German Accounting Standard number 21.

The informative value of the Statement of Cash Flows as an indicator of the liquidity position is limited. For further details on liquidity management, please refer to the information in the Management Report.

Landwirtschaftliche Rentenbank Annual Report 2025 54

**Statement of changes in equity as at 31 December 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Subscribed<br> Capital**<br> mEUR | **Principal<br> reserve** mEUR | **Guarantee<br> reserve** mEUR | **Distribut-able<br> profit**<br> m mEUR | **Total 2025** <br> mEUR |
| Equity at 1 January | 135.0 | 1252.6 | 0.0 | 19.0 | 1406.6 |
| Profit distribution | - | - | - | - 190 | - 190 |
| Net income | - | 19.5 | - | 19.5 | 39.0 |
| Allocation to/withdrawal from guarantee reserve | - | 0.0 | 0.0 | - | 0.0 |
| **Equity at 31 December** | **135.0** | **1272.1** | **0.0** | **19.5** | **1426.6** |

---

**Statement of changes in equity at 31 December 2024**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Subscribed <br> Capital**<br> mEUR | **Principal <br> reserve** mEUR | **Guarantee<br> reserve** mEUR | **Distribut-able <br> profit**<br> mEUR | **Total 2024** <br> mEUR |
| Equity at 1 January | 135.0 | 1233.6 | 0.0 | 18.5 | 1387.1 |
| Profit distribution | - | - | - | - 185 | - 185 |
| Net income | - | 19.0 | - | 19.0 | 38.0 |
| Allocation to/withdrawal from guarantee reserve | - | 0.0 | 0.0 | - | 0.0 |
| **Equity at 31 December** | **135.0** | **1252.6** | **0.0** | **19.0** | **1406.6** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 55

**Notes to the financial statements**

**Basis of accounting**

Landwirtschaftliche Rentenbank (hereinafter referred to as Rentenbank) has its registered office in Frankfurt am Main. It is recorded in the commercial register of the Local Court of Frankfurt am Main under number HRA 30636.

Rentenbank's annual financial statements have been prepared in accordance with the regulations of the German Commercial Code (*Handelsgesetzbuch*; HGB) applicable to large corporations and the relevant provisions of the German Regulation on the Accounting of Banks and Financial Services Institutions (*Verordnung über die Rechnungslegung der Kreditinstitute und Finanzdienstleistungs-institute*; RechKredV). The vertical format structure of the balance sheet and the income statement is based on the templates set out in RechKredV. Balance sheet and income statement items that are included in the template, but not used at Rentenbank are not reported.

Based on the exemption pursuant to Section 290 (5) in conjunction with Section 296 (2) HGB, Rentenbank is not required by law to prepare consolidated financial statements in accordance with HGB.

Rentenbank is exempt from corporation tax in accordance with Section 5 (1) number 2 (*Körperschaftsteuergesetz*; KStG) and trade tax in accordance with Section 3 number 2 (*Gewerbesteuergesetz*; GewStG). Accordingly, deferred taxes pursuant to Section 274 HGB are not to be recognised in the annual financial statements of Rentenbank.

Landwirtschaftliche Rentenbank Annual Report 2025 56

**Accounting policies**

**General information**

Assets, liabilities, and pending transactions are recognised and measured in accordance with the provisions of Sections 252 et seq. HGB, with due regard to the supplementary provisions for banks (Sections 340 et seq. HGB). The annual financial statements at 31 December 2025 are generally based on the same accounting policies as were applied in the prior year's annual financial statements. Any changes are described below.

**Recognition and measurement of financial instruments**

In accordance with Section 11 RechKredV pro rata interest is presented in the corresponding balance sheet item.

Loans and advances / liabilities

Loans and advances are accounted for in accordance with Section 340e (2) HGB, id est at their nominal amount less any write-downs. Liabilities are measured at their settlement amount in accordance with Section 253 (1) sentence 2 HGB. Premiums and discounts on loans as well as advances and liabilities are presented as either prepaid expenses or deferred income. Zero bonds are measured at their issue price plus capitalised interest based on the issue yield.

Securities held as fixed assets

Rentenbank does not keep a trading book pursuant to Section 1 (35) German Banking Act (*Kreditwesengesetz*, KWG) in conjunction with Article 4 (1) number 86 Regulation (EU) number 575/2013.

All securities are carried at amortised cost less any impairments. Reversals of impairments are recognised if the reasons for an earlier impairment no longer apply.

Fixed-income securities held as fixed assets are measured in accordance with the moderate lower of cost or market principle pursuant to Section 253 (3) sentence 5 HGB. On the basis of the criteria defined by the Insurance Committee of the Institute of Public Auditors in Germany (IDW), Rentenbank tests for a potential permanent impairment if the carrying amount of the bond was more than 20% below the fair value in the last six months prior to the reporting date or if the average of daily fair values over the last twelve months was more than 10% below the carrying amount.

Landwirtschaftliche Rentenbank Annual Report 2025 57

Because these securities are intended to be held over the long term, no write-downs to fair value are recognised if an identified impairment is considered to be only temporary. In particular, write-downs are not recognised when an identified impairment is only of a temporary nature with respect to future financial performance and it is expected that the securities will be fully repaid when due.

The shares in venture capital funds presented under Shares and other non-fixed-interest securities are held as fixed assets and measured in accordance with the moderate lower of cost or market principle. The elective option allowed by Section 253 (3) Sentence 6 HGB permits the recognition of impairments even when an impairment is not expected to be permanent. This elective option is generally exercised with due regard to the different life phases of the venture capital funds.

Securities allocated to the liquidity reserve

Securities allocated to the liquidity reserve are measured in accordance with the strict lower of cost or market principle (Section 253 (4) HGB). These securities are written down to their lower fair value where applicable.

Equity interests and shares in affiliated companies

Equity interests and shares in affiliated companies are measured at cost in accordance with the rules applicable to fixed assets. They are written down to their lower fair value to account for any impairment that is expected to be permanent.

Derivatives

Derivatives are only used to hedge existing or foreseeable market price risks. Measurement effects from derivatives are taken into account in the loss-free valuation of the banking book.

Upfront payments made and received from derivatives contracts are presented as prepaid expenses or deferred income, respectively. The reversal amounts from upfront payments from swap transactions are netted with the nominal interest income or expenses, depending on the contract.

Other assets / liabilities

"Other assets" are measured at their nominal amount and "Other liabilities" at their settlement amount.

**Loan loss provisions**

Identifiable risks in the lending business are sufficiently accounted for by specific valuation allowances and provisions. In addition to the fund for general banking risks presented in the balance

Landwirtschaftliche Rentenbank Annual Report 2025 58

sheet, general valuation allowances and contingency reserves pursuant to Section 340f HGB are recognised to account for latent (credit) risks and deducted from the corresponding asset items.

Rentenbank assesses on a monthly basis whether there are any objective indications that not all payments of interest and principal can be made in accordance with the terms of the underlying contracts. For accounting purposes, the Bank applies the following criteria to determine whether the recognition of a specific valuation allowance for a given receivable is required:

&nbsp;&nbsp;&nbsp;&nbsp;• significant
 financial difficulties;

&nbsp;&nbsp;&nbsp;&nbsp;• breach
 of contract, such as default or overdraft event exceeding 90 days;

&nbsp;&nbsp;&nbsp;&nbsp;• economic
 or contractual concessions by creditors;

&nbsp;&nbsp;&nbsp;&nbsp;• probable
 insolvency or financial restructuring of the borrower.

The amount of specific valuation allowances on loans and advances is equal to the difference between the outstanding loan amount and the lower fair value at the reporting date. The fair value is determined on the basis of the still expected discounted returns from the loan exposure. Due consideration is given to furnished collateral.

In accordance with IDW RS BFA 7, general valuation allowances are recognised for latent credit risks, the amount of which is calculated using the probability of default and the loss ratio as a basis.

Due to the low default rates of its portfolio, Rentenbank does not have enough of a default history to allow for a reliable estimate of its default rate.

Therefore, the internal master scale is derived from the realised default rates published by the rating agencies Fitch, Moody's, and S & P. The probabilities of default are allocated on the basis of the credit quality of the respective business partner.

The loss given default (LGD) rates for specific products and types of transactions are determined by application of analytical and expert-based methods, with due regard to the respective collateralisation.

**Determination of fair value of financial instruments**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is determined with reference to either directly observable exchange or market prices or the Bank's own calculations on the basis of valuation models and observable market parameters. When valuation models are applied, the fair value of contracts without option features is determined on the basis of the discounted expected future cash flows (discounted cash flow (DCF) method). Contracts with option features are measured by application of recognised option pricing models. Hedged items are discounted to present value using a base curve plus a credit spread based on credit quality.

Landwirtschaftliche Rentenbank Annual Report 2025 59

Derivatives are discounted to present value on the basis of the OIS (overnight interest rate swap) swap curve, as well as basis swap spreads and cross-currency basis spreads. These are differentiated by maturity and currency and obtained from external market data providers. Apart from the yield curves and spreads mentioned above, volatilities and correlations are also taken into account in the calculations.

**Loss-free valuation of the banking book**

According to the IDW Accounting Principle "Specific aspects of the loss-free valuation of interest rate transactions in the banking book (interest book)" (new version of IDW RS BFA 3), a provision for onerous contracts must be recognised in respect of any excess liability in the banking book resulting from an interest rate transaction on the basis of an overall assessment of the transaction.

A periodic (income statement) approach was applied to calculate the amount required to be recognised as a provision in the context of the loss-free valuation of the banking book. The banking book comprises all of Rentenbank's interest-bearing transactions and is managed on a uniform basis.

For calculation purposes, future period gains or losses in the banking book were determined on the basis of the profit/loss contributions of closed and open interest rate positions.

These future cash flows were discounted to present value at the reporting date on the basis of generally recognised, maturity-matched money market and capital market rates. Risk expenses were calculated on the basis of future expected losses and the proportion of administrative expenses allocable to portfolio management was determined on the basis of internal assessments. Based on these calculations, it was determined that no such provisions needed to be recognised at 31 December 2025.

**Trust assets / trust liabilities**

Trust assets and liabilities are presented as separate balance sheet items in accordance with Section 6 RechKredV. Due to the correlation between trust assets and liabilities, both are measured at nominal amounts.

**Property and equipment and intangible assets**

In accordance with German commercial law, items of property and equipment and intangible assets are measured at cost, less any depreciation and amortisation over their estimated useful lives.

Depreciation of property and equipment and amortisation of intangible assets are charged on a straight-line basis over estimated useful lives, ranging from 33 to 50 years for buildings and from three to six years for operational and office equipment. Intangible assets are amortised on a straight-line basis over a period of three to four years.

Landwirtschaftliche Rentenbank Annual Report 2025 60

**Other assets**

Other assets are recognised at acquisition or production cost.

**Prepaid expenses / deferred income**

Other prepaid expenses and as deferred income are recognised in accordance with Section 250 (1) and (2) HGB.

**Provisions**

Provisions are measured at the necessary settlement amount according to prudent business judgement, with due regard to future price and cost increases. Provisions with a remaining term of more than one year are discounted to present value at the reporting date.

Pension provisions

Pension obligations are discounted to present value by application of the average market interest rate for the last ten financial years, as calculated and published on a monthly basis by the Bundesbank in accordance with the German Regulation on the Discounting of Provisions (*Rückstellungsabzinsungsverordnung*, RückAbzins V). This average interest rate corresponds to the remaining term of the provisions. In accordance with Section 253 (2) sentence 2 H G B, provisions for pension obligations are discounted to present value on a flat-rate basis by application of the average market interest rate corresponding to an assumed remaining term of 15 years.

In accordance with Section 253 HGB, as amended in 2016, provisions for pension obligations are discounted to present value by application of the average market interest rate for the last ten financial years (last seven financial years up to and including 2015), which corresponds to the remaining term of the pension obligations. On this basis, a difference of EUR -3.6 million (EUR -1.4 million) was calculated for 2025. According to Section 253 (6) sentence 2 HGB, profits may only be distributed if the freely disposable reserves remaining after distribution, plus any profit carried forward and minus any loss carried forward, are at least equal to the (positive) difference determined in accordance with Section 253 (6) sentence 1 HGB.

Pension provisions are measured in accordance with actuarial principles using the projected unit credit (PUC) method. Under the PUC method, the provision amount is defined as the actuarial present value of the pension obligations earned by employees in the past periods of service up to the reporting date in accordance with the pension formula. The 2018 G Mortality Tables of Professor Dr Klaus Heubeck are applied as the biometric calculation parameters.

Landwirtschaftliche Rentenbank Annual Report 2025 61

The following parameters were applied as the basis for the calculation as of 31 December 2025:

---

| | | |
|:---|:---|:---|
| | <br> **2025** <br> p. a. | **2024** <br> p. a. |
| Actuarial interest rate pursuant to Section 253 (2) sentence 2 HGB | 2.06% | 1.90% |
| Career trend | 1.00% | 1.00% |
| Trend of creditable compensation | 2.50% | 2.50% |
| Pension trends (range of adjustments) | 1.00 – 2.50% | 1.00 – 2.20% |
| Employee turnover | 5.00%<br> on average | 5.00%<br> on average |
| Increase in Consumer Price Index (CPI)¹ | 2.20% | 2.20% |
| Development of contribution assessment ceilings | 3.00% | 3.50% |

---

---

| | |
|:---|:---|
| 1 | In 2025, accumulated inflation was not taken into account for CPI adjustments with subsequent funding (previous year: 4.2%). |

---

Other provisions

Other provisions are discounted to present value by application of the average market interest rates for the past seven financial years, as calculated and published on a monthly basis by the Bundesbank in accordance with the German Regulation on the Discounting of Provisions. This average interest rate corresponds to the remaining terms of the provisions.

Provisions for special promotional loans cover the interest subsidy for the entire term of the loan or until the repricing date.

Landwirtschaftliche Rentenbank Annual Report 2025 62

**Valuation units / currency translation**

Currency translation and the presentation of the transactions in the balance sheet without currency hedging are done in accordance with Section 340h in conjunction with Section 256a HGB and Section 252 (1) number 4 HGB. In accordance with Section 277 (5) sentence 2 HGB, currency translation gains are presented in the item of "Other operating income" (cf. note 24) and currency translation losses in the item of "Other operating expenses" (cf. note 25).

Rentenbank uses currency swaps and cross-currency interest rate swaps to hedge currency risks. Currency hedges are presented in the balance sheet by way of currency valuation units pursuant to Section 254 HGB. In these valuation units, the cash flows of the hedged item are fully reflected in the hedging instrument, id est the derivative (perfect hedge). The Bank utilises the net hedge presentation method to present the offsetting value changes between the hedged item and the hedging instrument.

To measure the effectiveness of hedging relationships, the Bank uses the critical terms match method, by which the terms of the hedged item are continually compared with those of the hedging instrument. Exchange rate fluctuations of the corresponding hedged items and hedging derivatives move in opposite directions and will offset each other in the time until the planned maturity dates of the valuation units with respect to the holding intention for the hedged risk.

Foreign currency-denominated assets, liabilities and pending transactions were translated into euros at the mean spot exchange rate at 31 December 2025. Rentenbank uses the reference rate of the European Central Bank (ECB) for this purpose.

Landwirtschaftliche Rentenbank Annual Report 2025 63

**Notes to the balance sheet**

The disclosures in the notes to the financial statements exclude pro rata interest, which may result in differences from the amounts presented on the face of the balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Loans
 and advances to banks

---

| | | |
|:---|:---|:---|
| **Breakdown by residual maturity** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Payable on demand | 1974 | 9081 |
| Other loans and advances |  |  |
| • up to three months | 2672 | 1929 |
| • more than three months and up to one year | 6825 | 5549 |
| • more than one year and up to five years | 23876 | 25112 |
| • more than five years | 21725 | 23161 |
| **Total** | **57072** | **64832** |

---

Loans and advances to companies in which an equity interest is held amounted to EUR 4,000 million (EUR 4,428 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Loans
 and advances to customers

---

| | | |
|:---|:---|:---|
| **Breakdown by residual maturity** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| up to three months | 253 | 66 |
| more than three months and up to one year | 531 | 301 |
| more than one year and up to five years | 3347 | 3241 |
| more than five years | 2791 | 3225 |
| **Total** | **6922** | **6833** |

---

As of 31 December 2025, there were no loans and advances to customers with an indefinite term to maturity within the meaning of Section 9 (3) number 1 RechKredV.

Landwirtschaftliche Rentenbank Annual Report 2025 64

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Bonds
 and other fixed-income securities

Securities with a total carrying amount of EUR 18,686 million (EUR 16,535 million) are assigned to fixed assets. For securities totalling EUR 11,969 million (EUR 11,033 million), the fair value of EUR 11,428 million (EUR 10,357 million) is less than the carrying amount. The undisclosed liabilities resulted from the changed environment of market interest rates.

Based on the regular monitoring of issuers, there were no permanent impairments of securities held as fixed assets, as in the prior year. Avoided impairments amounted to EUR 541 million, as compared to EUR 675 million in the prior year.

As in the prior year, no securities of affiliated companies or companies in which an equity interest is held were included in bonds and other fixed-income securities.

Of the total bond holdings, an amount of EUR 16,799 million is eligible as collateral with Deutsche Bundesbank. Of this amount, one security with a nominal value of EUR 5 million has been deposited as collateral with EUREX.

Separate disclosures on exchange listing and residual maturity:

---

| | | |
|:---|:---|:---|
| **Exchange listing** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Exchange-listed | 18356 | 15896 |
| Not exchange-listed | 331 | 639 |
| **Total** | **18686** | **16535** |

---

---

| | | |
|:---|:---|:---|
| **Residual maturity up to one year** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Public-sector issuers | 122 | 156 |
| Other issuers | 2032 | 2010 |
| **Total** | **2154** | **2166** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Shares
 and other non-fixed income securities

The line item of "Shares and other non-fixed securities" with a total carrying amount of EUR 46.7 million (EUR 33.2 million), included exchange-listed securities with a carrying amount of EUR 0.1 million (EUR 0.1 million) and non-exchange-tradable securities with a carrying amount of EUR 46.6 million (EUR 33.1 million).

Landwirtschaftliche Rentenbank Annual Report 2025 65

Securities in the form of shares in venture capital funds with a carrying amount of EUR 46.6 million (EUR 33.1 million) are held as fixed assets. In the case of securities totalling EUR 24.7 million (EUR 6.5 million), the fair value of EUR 23.1 million (EUR 5.8 million) is less than the carrying amount. In view of the early life phase of the venture capital funds, no impairment was recognised. The avoided impairments amount to EUR 1.6 million (EUR 0.7 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Equity
 interests and shares in affiliated companies

Rentenbank holds equity investments amounting to EUR 328 million (EUR 328 million) and shares in affiliated companies amounting to EUR 50 million (EUR 50 million). As in the prior year, no exchange-tradable securities are included in the balance sheet items of "Equity interests" and "Shares in affiliated companies".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Trust
 assets

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Receivables from the German Federal Republic's Special-Purpose Fund held by Rentenbank | 178 | 169 |
| **Total** | **178** | **169** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 66

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Fixed
 assets

**Statement of changes in fixed assets** (in euro millions)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Intangible**<br> **assets** | **Property and equipment** | **Property and equipment** | **Property and equipment** | **Financial investments** | **Financial investments** | **Financial investments** | **Financial investments** |
| Acquisition/pro-duction cost<br> 1/1/2025 | **Software**<br> **and**<br> **licenses**<br>**112** | **Land and<br> buildings**<br>**55** | **Operatio-nal**<br> **and office<br> equipment**<br>**19** | **Assets under<br> construction**<br>**33** | **Bonds and<br> other fixed-<br> income<br> securities**<br>**16485** | **Shares**<br> **and other non<br> - fixed income<br> securities**<br>**33** | **Equity<br> interests**<br>**328** | **Shares in<br> affiliated<br> companies**<br>**50** |
| Acquisitions | 20 | - | 1 | 12 | 4316 | 14 | - | - |
| Disposals | - | - | - | - | - 2115 | 0 | - | - |
| Transfers | - | - | - | - | 0 | - | - | - |
| Acquisition/pro-duction cost 31/12/2025 | **132** | **55** | **20** | **45** | **18686** | **47** | **328** | **50** |
| Accumulated depreciation and amortisation 1/1/ 2025 | -75 | -10 | -17 | - | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Depreciation, amortisation and impairments |  |  |  |  | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Accumulated depreciation and amortisation on disposals | - | - | - | - | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Depreciation and amortisation 2025 | -15 | -1 | -1 | - | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Accumulated depreciation and amortisation 1 Dec 2025 | -90 | -11 | -18 | - | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Write-ups | – | – | – | – | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** | **Net change pursuant to Section 34 (3) sentence 2 RechKredV: 0,3 EURm** |
| Carrying amounts 31/12/2025 | **42** | **44** | **2** | **45** | **18686** | **47** | **328** | **50** |
| Carrying amounts 31/12/2024 | **37** | **45** | **2** | **33** | **16485** | **33** | **328** | **50** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 67

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Other
 assets

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Cash collateral provided for derivatives contracts | 3809 | 2425 |
| Miscellaneous | 2 | 1 |
| **Total** | **3811** | **2426** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Prepaid
 expenses

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Premium from lending business | 1083 | 1366 |
| Discount from issuing business | 669 | 749 |
| Upfront payments made from derivatives | 246 | 328 |
| Other | 3 | 2 |
| **Total** | **2001** | **2445** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Liabilities
 to banks

---

| | | |
|:---|:---|:---|
| **Breakdown by residual maturity** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Payable on demand | 0 | 0 |
| With agreed term or notice period |  |  |
| • up to three months | 81 | 642 |
| • more than three months and up to one year | 9 | 27 |
| • more than one year and up to five years | 64 | 124 |
| • more than five years | - | 0 |
| **Total** | **154** | **793** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Liabilities
 to customers

---

| | | |
|:---|:---|:---|
| **Breakdown by residual maturity** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Payable on demand | 0 | 0 |

---

Landwirtschaftliche Rentenbank Annual Report 2025 68

---

| | | |
|:---|:---|:---|
| With agreed term or notice period |  |  |
| • up to three months | - | 62 |
| • more than three months and up to one year | 136 | 16 |
| • more than one year and up to five years | 280 | 404 |
| • more than five years | 1021 | 938 |
| **Total** | **1437** | **1420** |

---

This item includes liabilities to affiliated companies in the amount of EUR 30 million (EUR 30 million). There were no liabilities to companies in which an equity interest is held at the reporting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Securitised
 liabilities

---

| | | |
|:---|:---|:---|
| **Breakdown by residual maturity** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Debt securities issued |  |  |
| • up to one year | 12480 | 17843 |
| • more than one year and up to five years | 46201 | 44215 |
| • more than five years | 21294 | 21228 |
| **Total** | **79975** | **83286** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 69

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Trust
 liabilities

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Liabilities from German Federal Republic's Special-Purpose Fund held at Rentenbank | 178 | 169 |
| **Total** | **178** | **169** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other
 liabilities

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Cash collateral received for derivatives contracts | 130 | 344 |
| Miscellaneous | 12 | 8 |
| **Total** | **142** | **352** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Deferred
 income

---

| | | |
|:---|:---|:---|
| **Breakdown** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Discount from lending business | 46 | 47 |
| Premium from issuing business | 185 | 264 |
| Upfront payments received from derivatives | 1713 | 2071 |
| Payments received from EONIA–€STR conversion | 8 | 10 |
| **Total** | **1952** | **2392** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 70

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Provisions

This balance sheet item includes provisions for pension obligations to employees who are contractually entitled to pension benefits in the amount of EUR 154 million (EUR 154 million). The Other provisions break down as follows:

---

| | | |
|:---|:---|:---|
| **Other provisions** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Interest subsidy for promotional loans | 168 | 150 |
| Promotion of research for innovation in agribusiness | 15 | 17 |
| Promotion of agriculture (Promotional Fund) | 9 | 7 |
| Miscellaneous provisions | 14 | 14 |
| **Total** | **206** | **188** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Foreign
 currency assets and liabilities

As at the reporting date, assets denominated in foreign currency amount to EUR 3,434 million (EUR 4,001 million) and liabilities denominated in foreign currency amount to EUR 30,499 million (EUR 35,994 million). Currency risks arising from foreign currency holdings have been almost completely hedged by derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Contingent
 liabilities

Contingent liabilities of EUR 10 million (EUR 17 million) result from deficiency guarantees. Deficiency guarantees were issued for interest-subsidised capital market loans backed by public sector counter-guarantees. We do not expect these guarantees to be called.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) Other
 commitments

Other commitments consist of irrevocable loan commitments of EUR 1,909 million (EUR 590 million), almost all of which in the special promotional loan business.

Irrevocable loan commitments result from transactions for which Rentenbank has made a binding commitment to its customers, thereby exposing Rentenbank to a future credit risk. Based on experience values from previous years, Rentenbank expects that these irrevocable loan commitments will be drawn down almost entirely in 2026.

Landwirtschaftliche Rentenbank Annual Report 2025 71

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Cover
 calculation

Outstanding liabilities requiring cover consist exclusively of a small number of bearer bonds of insignificant amounts, the submission period for which has not yet expired. Loans and advances to customers in the amount of EUR 1 million (EUR 1 million) have been designated as cover assets to back debt securities issued.

Landwirtschaftliche Rentenbank Annual Report 2025 72

**Notes to the income statement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) Interest
 income

Interest income from cash collateral posted as well as from lending and money market transactions is presented after deduction of negative interest in the total amount of EUR 2.3 million (EUR 2.9 million) (reducing income). Interest income includes the pro rata utilisation of the corresponding provisions for special promotional loans in the amount of EUR 45.9 million (EUR 48.9 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Interest
 expenses

Interest expenses for the recognition of provisions for the interest subsidy for special promotional loans amounted to EUR 63.8 million (EUR 32.6 million) in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Other
 operating income

Presentation of the most important sub-items according to Section 35 (1) number 4 RechKredV:

---

| | | |
|:---|:---|:---|
| **Other operating income** | <br> **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Rental income / cost allocations from residential buildings and properties | 3 | 2 |
| Income from reversal of provisions | 3 | 3 |
| Capitalisation of project work contributed by internal employees | 3 | 3 |
| Other reimbursements | 6 | 8 |
| Other income | 1 | 1 |
| **Total** | **16** | **17** |

---

The item "Other operating income" includes currency translation gains of EUR 8.4 thousand (EUR 8.1 thousand). This currency translation item resulted exclusively from the currency valuation of balances in foreign currency accounts with correspondent banks in foreign countries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) Other
 operating expenses

Presentation of the most important items according to Section 35 (1) number 4 RechKredV:

Landwirtschaftliche Rentenbank Annual Report 2025 73

---

| | | |
|:---|:---|:---|
| **Other operating expenses** | <br> **31/12/2025** <br> mEUR | **31/12/2024**<br> mEUR |
| Interest expenses from the valuation of pension provisions | 0 | 1 |
| Capital allocation research for innovation in agribusiness | 4 | 3 |
| Other expenses | 1 | 1 |
| **Total** | **5** | **5** |

---

The item "Other operating expenses" includes expenses from foreign currency translation amounting to EUR 8.2 thousand (EUR 13.5 thousand). This foreign currency translation item results exclusively from the valuation of balances on foreign currency accounts with correspondent banks abroad.

Landwirtschaftliche Rentenbank Annual Report 2025 74

**Other disclosures**

**Other financial commitments**

In 2025, framework agreements were concluded with the development banks of the German federal states in relation to the granting of promotional loans for the 2026 financial year in the amount of EUR 2,115 million (EUR 2,155 million).

**Derivative financial instruments**

Derivatives are only used to hedge existing or foreseeable market price risks. The transaction volume is limited by counterparty-specific and product-specific limits and is continuously monitored as part of the risk management function.

Derivative transactions

Pursuant to Section 285 number 19 HGB, derivative transactions not measured at fair value are presented in the table below (netting and collateral agreements are not included in the table):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivatives carried in the banking<br> book to hedge**<br>**Interest rate risks** | <br> **Nominal**<br> **values**<br> **31/12/2025**<br> mEUR<br>| **Nominal**<br> **values**<br> **31/12/2024**<br> mEUR<br>| **Market**<br> **values**<br> **positive**<br> **31/12/2025** <br> mEUR | **Market**<br> **values**<br> **negative**<br> **31/12/2025**<br> mEUR<br>|
| Interest rate swaps | 124249 | 123466 | 2136 | 3786 |
| • of which €STR swaps | 1300 | 1200 | 1 | 0 |
| • of which termination and conversion rights embedded in swaps | 2364 | 2323 | 135 | 244 |
| Swaptions (sales) | 49 | 49 | 0 | 1 |
| **Total interest rate risks** | **124298** | **123515** | **2136** | **3787** |
| **Currency risks** |  |  |  |  |
| Cross-currency interest rate swaps | 30860 | 35860 | 183 | 2111 |
| Currency swaps | 2783 | 3714 | 4 | 14 |
| **Total currency risks** | **33643** | **39574** | **187** | **2125** |
| **Total interest rate and currency risks** | **157941** | **163089** | **2323** | **5912** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 75

Derivative transactions are broken down by residual maturity in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br> **Nominal values**<br> **interest rate risks** | <br> **Nominal values**<br> **interest rate risks** | **Nominal values**<br> **currency risks** | **Nominal values**<br> **currency risks** |
| **Derivatives in the banking book** | **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR | **31/12/2025**<br> mEUR | **31/12/2024**<br> mEUR |
| Up to three months | 6430 | 8166 | 4581 | 6887 |
| More than three months and up to one year | 12371 | 10718 | 3168 | 5003 |
| More than one year and up to five years | 64657 | 64691 | 20992 | 22116 |
| More than five years | 40840 | 39940 | 4902 | 5568 |
| **Total** | **124298** | **123515** | **33643** | **39574** |

---

Derivative transactions are broken down by counterparty in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Derivatives in the banking book** | <br> **Nominal**<br> **values**<br> **31/12/2025** <br> mEUR | **Nominal**<br> **values**<br> **31/12/2024**<br> mEUR | **Market**<br> **values**<br> **positive**<br> **31/12/2025** <br> mEUR | **Market**<br> **values**<br> **negative**<br> **31/12/2025** <br> mEUR |
| Banks in the OECD | 145781 | 153089 | 2229 | 5478 |
| Other counterparties in the OECD | 12160 | 10000 | 94 | 434 |
| **Total** | **157941** | **163089** | **2323** | **5912** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 76

**Disclosures on valuation units pursuant to<br> Section 285 number 23 HGB**

Hedged items were grouped into valuation units at the reporting date as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Balance sheet item** | **Risk type** | **Carrying<br> amount**<br> **2025**<br> mEUR | **Carrying<br> amount <br> 2024** <br> mEUR | <br> **Hedged risk/**<br> **nominal value**<br> **2025**<br> mEUR | **Hedged risk/**<br> **nominal value**<br> **2024**<br> mEUR |
| Other loans and advances to banks | Currency | 48 | 27 | 54 | 32 |
| Bonds and other fixed-income securities | Currency | 3391 | 3741 | 3225 | 3745 |
| Liabilities to customers | Currency | 27 | 27 | 26 | 29 |
| Securitised liabilities | Currency | 32104 | 34801 | 30331 | 35768 |

---

Please refer to the Section entitled valuation units / currency translation for a description of the qualitative formation of valuation units.

Landwirtschaftliche Rentenbank Annual Report 2025 77

**Compensation of the Management Board and the Supervisory Board**

Pursuant to Section 285 number 9a HGB, the total compensation of the members of the Bank's Management Board amounted to EUR 1,582 thousand in the 2025 financial year (EUR 1,580 thousand).<br>The following compensation was paid to the individual Management Board members in the 2025 financial year:

---

| | | | |
|:---|:---|:---|:---|
| **Breakdown** | <br> **Fixed**<br> **compensation**<br> kEUR | **Other**<br> **compensation**<br> kEUR | **Total**<br> kEUR |
| Nikola Steinbock | 550 | 14 | 564 |
| Dietmar Ilg | 500 | 8 | 508 |
| Dr Marc Kaninke | 500 | 10 | 510 |
| **Total Management Board** | **1550** | **32** | **1582** |

---

As of 31 December 2025, the provision for pension commitments to former members of the Management Board and their survivors totalled EUR 23,666 thousand (EUR 22,596 thousand). An amount of EUR 1,817 thousand (EUR 1,706 thousand) was paid for current pension benefits.

Under the established compensation system, the annual base compensation of the Chairperson of the Supervisory Board amounts to EUR 30 thousand, that of the Vice Chairperson to EUR 20 thousand, and that of all other Supervisory Board members EUR 10 thousand each. An additional compensation of EUR 2 thousand is paid to members for each committee membership and EUR 4 thousand to the Chairperson of each committee. The compensation of members of the German federal government, who are members of the Supervisory Board pursuant to Section 7 (1) number 4 of Rentenbank's Governing Law, and the Representative of the German Federal Ministry of Food and Agriculture pursuant to Section 7 (5) of the Rentenbank's Governing Law, has been set at EUR 0.

The total compensation granted to the Supervisory Board members in the past financial year amounted to EUR 228.5 thousand (EUR 239.2 thousand).

Landwirtschaftliche Rentenbank Annual Report 2025 78

The individual compensation amounts are presented in the table below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Member** | **Time period** | **Time period** | <br> **Compensation**<br> in euro thousand (rounded) | <br> **Compensation**<br> in euro thousand (rounded) |
|  | **2025** | **2024** | **2025** | **2024** |
| Joachim Rukwied | 1.1. – 31.12. | 1.1. – 31.12. | 46.0 | 46.0 |
| Cem Özdemir | 1.1. – 6.5. | 1.1. – 31.12. | 0.0 | 0.0 |
| Alois Rainer | 6.5 – 31.12. | - | 0.0 | - |
| Silvia Bender | 1.1. – 20.5. | 1.1. – 31.12. | 0.0 | 0.0 |
| Petra Bentkämper | - | 1.1. – 4.7. | - | 5.1 |
| Silvia Breher | 24.6. – 31.12. | - | 0.0 | - |
| Dr Frank Czichowski | 1.1. – 31.12. | 4.7. – 31.12. | 16.0 | 7.9 |
| Martin Courbier | 1.1. – 31.12. | - | 10.0 | - |
| Doris Dietze | 19.6. – 31.12. | - | 0.0 | - |
| Jan Fries | 1.1. – 31.12. | 1.1. – 31.12. | 10.0 | 10.0 |
| Dr Holger Hennies | 1.1. – 31.12. | 1.1. – 31.12. | 10.0 | 10.0 |
| Franz-Josef Holzenkamp | 1.1. – 31.12. | 1.1. – 31.12. | 14.0 | 14.0 |
| Michaela Kaniber | 1.1. – 31.12. | 1.1. – 31.12. | 10.0 | 10.0 |
| Torsten Krawczyk | 1.1. – 31.12. | 4.7. – 31.12. | 10.0 | 4.9 |
| Bernhard Krüsken | 1.1. – 31.12. | 1.1. – 31.12. | 18.0 | 18.0 |
| Detlef Kurreck | - | 1.1. – 4.7. | - | 5.1 |
| Stefanie Münz | 1.1. – 31.12. | 4.7. – 31.12. | 14.0 | 6.9 |
| Dr Marcus Pleyer | 1.1. – 10.5. | 1.1. – 31.12. | 6.5 | 18.0 |
| Michael Reuther | - | 1.1. – 4.7. | - | 8.2 |
| Dr Birgit Roos | - | 1.1. – 4.7. | - | 7.2 |
| Harald Schaum | 1.1. – 31.12. | 1.1. – 31.12. | 14.0 | 14.0 |
| Karsten Schmal | 1.1. – 31.12. | 1.1. – 31.12. | 12.0 | 13.0 |
| Rainer Schuler | - | 4.7. – 31.12. | - | 4.9 |
| Tim Schwertner | - | 1.1. – 4.7. | - | 5.1 |
| Sven Schulze | 1.1. – 31.12. | 1.1. – 31.12. | 10.0 | 10.0 |
| Susanne Schulze Bockeloh | 1.1. – 31.12. | 4.7. – 31.12. | 14.0 | 6.9 |
| Dr Caroline Toffel | 1.1. – 31.12. | 1.1. – 31.12. | 14.0 | 14.0 |
| **Total compensation** |  |  | **228.5** | **239.2** |

---

Landwirtschaftliche Rentenbank Annual Report 2025 79

**Average number of employees pursuant to Section 267 (5) HGB**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Employees** | <br> **2025** | <br> **2025** | <br> **2025** | <br> **2024** | <br> **2024** | <br> **2024** |
|  | **Men** | **Women** | **Total** | **Men** | **Women** | **Total** |
| Full-time | 232 | 124 | 356 | 227 | 125 | 352 |
| Part-time | 32 | 85 | 117 | 23 | 76 | 99 |
| **Total** | **264** | **209** | **473** | **250** | **201** | **451** |

---

Rentenbank had an annual average of 209 female employees (201) and 264 male employees (250), - full-time and part-time - under contract in the 2025 financial year.

**Shareholdings pursuant to Section 285 number 11 and Section 340a (4) number 2 HGB**

In accordance with Section 286 (3) sentence 1 number 1 HGB, we have opted not to provide a list of share-holdings pursuant to Section 285 number 11 HGB due to their minor significance for an assessment of Bank's financial position, cash flows, and financial performance.

Pursuant to Section 340a (4) number 2 HGB, the equity interests held in large corporations exceeding 5% of the voting rights in each case are listed in the following:

&nbsp;&nbsp;&nbsp;&nbsp;• Niedersächsische
 Landgesellschaft mbH, Hanover

**Other liability agreements**

Rentenbank has undertaken in a letter of comfort to endow LR Beteiligungsgesellschaft mbH with its registered head office in Frankfurt am Main with sufficient financial resources to ensure that it is always able to meet its obligations on time insofar and as long as it holds 100% of the equity in LR Beteiligungsgesellschaft mbH.

Landwirtschaftliche Rentenbank Annual Report 2025 80

**Auditor's fees pursuant to Section 285 number 17 HGB**

The fees of Rentenbank's auditors are as follows:

---

| | | |
|:---|:---|:---|
| **Breakdown<sup>1</sup>** | <br>**2025**<br> kEUR | **2024**<br> kEUR |
| Auditing services | 384.6 | 482.8 |
| Other assurance services | 114.2 | 117.3 |
| Other services | 48.7 | 18.0 |
| **Total** | **547.5** | **618.1** |

---

---

| | |
|:---|:---|
| 1 | Of the total fees payable to the auditor in 2025, an amount of EUR 6,4 thousand was for auditing services provided in the previous year. |

---

**Events after the reporting date pursuant to Section 285 number 33 HGB**

No events of particular significance occurred after the close of the financial year that were not included in the income statement or the balance sheet.

**Proposals for the utilisation of profit pursuant to Section 285 number 34 HGB**

The profit utilisation proposal included in the annual financial statements for the 2025 financial year requires the adoption of approving resolutions by the Supervisory Board.

The proposal for the utilisation of 2025 net income and profit is set out in the following draft resolutions:

&nbsp;&nbsp;&nbsp;&nbsp;• From
 the net income of EUR 39,000,000 presented in the income statement, an amount of
 EUR 19,500,000 will be allocated to the principal reserve pursuant to Section 2 (2)
 of Rentenbank's Governing Law.

&nbsp;&nbsp;&nbsp;&nbsp;• From
 the remaining distributable profit of EUR 19,500,000, an amount of EUR 9,750,000
 will be allocated to the Federal Republic of Germany's Special-Purpose Fund and
 an amount of EUR 9,750,000 to the Promotional Fund.

Landwirtschaftliche Rentenbank Annual Report 2025 81

**Disclosures of mandates pursuant to Section 340a (4) number 1 HGB**

Pursuant to Section 340a (4) number 1 HGB, the mandates held by the legal representatives or other employees of Rentenbank on the legally required supervisory boards of large corporations (Section 267 (3) HGB) are listed below:

Nikola Steinbock Universitätsklinikum Leipzig, AöR<br> (Member of the Supervisory Board)

---

| | |
|:---|:---|
| Dietmar Ilg | BVVG Bodenverwertungs- und - verwaltungs GmbH<br> (Member of the Supervisory Board until 14 August 2025)<br>Internationales Bankhaus Bodensee AG<br> (Member of the Supervisory Board)<br>VR Smart Finanz AG, Eschborn<br> (Member of the Supervisory Board) |

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The Management Board's and Supervisory Board's Statement of Compliance with the Public Corporate Governance Code of the Federal Republic of Germany is publicly available at Rentenbank's website.

The annual financial statements and the management report are available on Rentenbank's website and in the Company Register.

Landwirtschaftliche Rentenbank Annual Report 2025 82

**Members of the Management Board and the Supervisory Board** 

**(Time period: 1/1/2025 to 2/3/2026)**

**Management Board**

Nikola Steinbock (Chairperson of the Management Board), foreign trade merchant

Dietmar Ilg (Chief Risk Officer), Dipl.-Kaufmann

Dr Marc Kaninke (Chief Financial and I T Officer), Dipl.-Volkswirt, Dipl.-Kaufmann

**Supervisory Board**

Chairperson:

Joachim Rukwied President of Deutscher Bauernverband e. V.

Deputy Chair:

Alois Rainer<br> (since 6 May 2025) Federal Minister of Agriculture, Food and Regional Identity

Cem Özdemir (until 6 May 2025) German Federal Minister of Food and Agriculture

Representatives of Deutscher Bauernverband e. V.:

Stefanie Sabet<br> (since 1 January 2026) Secretary General of Deutscher Bauernverband e. V.

Bernhard Krüsken Secretary General of Deutscher Bauernverband e. V.

(until 31 December 2025)

Karsten Schmal President of Hessischer Bauernverband e. V.

Dr Holger Hennies President of Landvolk Niedersachsen Landesbauernverband e.V.

Torsten Krawczyk President of Sächsischer Landesbauernverband e. V.

Landwirtschaftliche Rentenbank Annual Report 2025 83

Susanne Schulze Bockeloh Vice President of Deutscher Bauernverband e. V.

Representative of Deutscher Raiffeisenverband e. V.:

Franz-Josef Holzenkamp President of Deutscher Raiffeisenverband e. V.

Representative of the food industry:

Martin Courbier Managing Director of DER AGRARHANDEL – Bundesverband<br> Agrarhandel und Verein der Getreidehändler der Hamburger<br> Börse e. V.

Agriculture Ministers of the German federal states:

**Baden-Württemberg:** 

Peter Hauk Minister of Food, Rural Affairs and Consumer Protection of

(since 1 January 2026) the State of Baden-Württemberg

**Brandenburg:** 

Hanka Mittelstädt Minister of Agriculture and Food, Environment and Consumer

(since 1 January 2026) Protection of the State of Brandenburg

**Hamburg:** 

Katharina Fegebank Second Mayor of the Free and Hanseatic City of Hamburg

(since 1 January 2026) and Senator of the Authority for Environment, Climate, Energy and<br> Agriculture of the Free and Hanseatic City of Hamburg

**Bavaria:** 

Michaela Kaniber State Minister in the Bavarian State Ministry of Food,

(until 31 December 2025) Agriculture, Forestry and Tourism

**Bremen:** 

Jan Fries State Councillor, Senate for Environment, Climate and

(until 31 December 2025) Science of the Free Hanseatic City of Bremen

**Saxony-Anhalt:** 

Sven Schulze Minister Economic Affairs, Tourism, Agriculture

(until 31 December 2025) and Forests of the Federal State of Saxony-Anhalt

Landwirtschaftliche Rentenbank Annual Report 2025 84

Representative of the trade unions:

Harald Schaum Federal Executive Board of the IG Bauen-Agrar-Umwelt

Representatives of the German Federal Ministry of Agriculture, Food and Regional Identity:

Silvia Breher<br> (since 24 June 2025) Parliamentary State Secretary

Silvia Bender State Secretary

(until 20 May 2025)

Representative of the German Federal Ministry of Finance:

Doris Dietze<br> (since 19 June 2025) Head of Sub-Directorate VII B

Dr Marcus Pleyer Head of Directorate

(until 10 May 2025)

Representatives of banks or other lending experts:

Dr Frank Czichowski Member of the Supervisory Board of<br> Commerzbank AG

Stefanie Münz Member of the Management Board of<br> Landesbank Baden-Württemberg

Dr Caroline Toffel Member of the Management Board of<br> Berliner Volksbank e G

Frankfurt am Main, 2 March 2026

LANDWIRTSCHAFTLICHE RENTENBANK

The Management Board

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| ![](tm2612034d1_ex99-eimg006.jpg) | ![](tm2612034d1_ex99-eimg007.jpg) | ![](tm2612034d1_ex99-eimg008.jpg) |
| Nikola Steinbock | Dietmar Ilg | Dr Marc Kaninke |

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Landwirtschaftliche Rentenbank Annual Report 2025 85

**Statement by the legal representatives**

To the best of our knowledge, and in accordance with the applicable reporting principles, the annual financial statements give a true and fair view of the financial position, cash flows and financial performance of Rentenbank, and the management report includes a fair review of the development and performance of the business and the position of Rentenbank, together with a description of the principal opportunities and risks associated with the expected development of Rentenbank.

Frankfurt am Main, 2 March 2026

LANDWIRTSCHAFTLICHE RENTENBANK

The Management Board

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| | | |
|:---|:---|:---|
| ![](tm2612034d1_ex99-eimg006.jpg) | ![](tm2612034d1_ex99-eimg007.jpg) | ![](tm2612034d1_ex99-eimg008.jpg) |
| Nikola Steinbock | Dietmar Ilg | Dr Marc Kaninke |

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Landwirtschaftliche Rentenbank Annual Report 2025 86

**Independent Auditor's Report<sup>1</sup>**

To Landwirtschaftliche Rentenbank, Frankfurt am Main

**Report on the audit of the annual financial statements and of the management report**

Audit Opinions

We have audited the annual financial statements of Landwirtschaftliche Rentenbank, Frankfurt am Main/Germany, which comprise the balance sheet as at 31 December 2025, and the statement of profit and loss, the cash flow statement and the statement of changes in equity for the financial year from 1 January to 31 December 2025, and the notes to the financial statements, including the presentation of the recognition and measurement policies. In addition, we have audited the management report of Landwirtschaftliche Rentenbank, Frankfurt am Main/Germany, for the financial year from 1 January to 31 December 2025. In accordance with the German legal requirements, we have not audited the content of the declaration of compliance of the executive board and the supervisory board concerning the Public Corporate Governance Code of the German Federal Government referred to in section "Public Corporate Governance Code" of the management report.

In our opinion, on the basis of the knowledge obtained in the audit,

● the accompanying annual financial statements comply, in all material respects, with the requirements of German commercial law and give a true and fair view of the assets, liabilities and financial position of the Company as at 31 December 2025 and of its financial performance for the financial year from 1 January to 31 December 2025 in compliance with German Legally Required Accounting Principles, and

● the accompanying management report as a whole provides an appropriate view of the Company's position. In all material respects, this management report is consistent with the annual financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the management report does not cover the content of the above-mentioned declaration of compliance referred to in section "Public Corporate Governance Code" of the management report.

Pursuant to Section 322 (3) sentence 1 German Commercial Code (HGB), we declare that our audit has not led to any reservations relating to the legal compliance of the annual financial statements and of the management report.

<sup>1</sup> Translation of the independent auditor's report issued in German language on the financial statements and the management report prepared in German language by the executive board of Landwirtschaftliche Rentenbank, Frankfurt am Main. The German language statements are decisive.

Landwirtschaftliche Rentenbank Annual Report 2025 87

Basis for the Audit opinions

We conducted our audit of the annual financial statements and of the management report in accordance with Section 317 HGB and the EU Audit Regulation (Number 537/2014; referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Annual Financial Statements and of the Management Report" section of our auditor's report. We are independent of the Company in accordance with the requirements of European law and German commercial and professional law and of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other German professional responsibilities in accordance with these requirements and the IESBA Code. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the annual financial statements and on the management report.

Key Audit Matters in the Audit of the Annual Financial Statements

We determined that there are no key audit matters to be stated in our auditor's report.

Other Information

The executive directors and/or the supervisory board are responsible for the other information. The other information comprises:

● the report of the supervisory Board,

● the declaration of compliance of the executive board and the supervisory board concerning the Public Corporate Governance Code of the German Federal Government referred to in section "Public Corporate Governance Code" of the management report,

● the executive directors' confirmations in accordance with Section 264 (2) sentence 3 HGB regarding the annual financial statements and in accordance with Section 289 (1) sentence 5 HGB regarding the management report, and

● all other parts of the annual report,

● but not the annual financial statements, not the audited content of the disclosures in the management report and not our auditor's report thereon.

The supervisory board is responsible for the report of the supervisory board. The executive directors and the supervisory board are responsible for the declaration of compliance concerning the Public

Landwirtschaftliche Rentenbank Annual Report 2025 88

Corporate Governance Code of the German Federal Government. Otherwise, the executive directors are responsible for the other information.

Our audit opinions on the annual financial statements and on the management report do not cover the other information, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information identified above and, in doing so, to consider whether the other information

● is materially inconsistent with the annual financial statements, with the audited content of the disclosures in the management report or our knowledge obtained in the audit, or

● otherwise appears to be materially misstated.

Responsibility of the Executive Directors and the Supervisory Board for the Annual Financial Statements and the Management Report

The executive directors are responsible for the preparation of the annual financial statements that comply, in all material respects, with the requirements of German commercial law, and that the annual financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Company in compliance with German Legally Required Accounting Principles. In addition, the executive directors are responsible for such internal control as they, in accordance with German Legally Required Accounting Principles, have determined necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud (i.e. fraudulent financial reporting and misappropriation of assets) or error.

In preparing the annual financial statements, the executive directors are responsible for assessing the Company's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting, provided no actual or legal circumstances conflict therewith.

Furthermore, the executive directors are responsible for the preparation of the management report that as a whole provides an appropriate view of the Company's position and is, in all material respects, consistent with the annual financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the management report.

The supervisory board is responsible for overseeing the Company's financial reporting process for the preparation of the annual financial statements and of the management report.

Landwirtschaftliche Rentenbank Annual Report 2025 89

Auditor's Responsibilities for the Audit of the Annual Financial Statements and of the Management Report

Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the management report as a whole provides an appropriate view of the Company's position and, in all material respects, is consistent with the annual financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the annual financial statements and on the management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual financial statements and this management report.

We exercise professional judgement and maintain professional scepticism throughout the audit. We also:

● identify and assess the risks of material misstatement of the annual financial statements and of the management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● obtain an understanding of internal control relevant to the audit of the annual financial statements and of arrangements and measures relevant to the audit of the management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of internal control or these arrangements and measures of the Company.

● evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.

● conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the annual financial statements and in the management report or, if such disclosures are inadequate, to modify our

Landwirtschaftliche Rentenbank Annual Report 2025 90

respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to be able to continue as a going concern.

● evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements present the underlying transactions and events in a manner that the annual financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Company in compliance with German Legally Required Accounting Principles.

● evaluate the consistency of the management report with the annual financial statements, its conformity with German law, and the view of the Company's position it provides.

● perform audit procedures on the prospective information presented by the executive directors in the management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards applied to eliminate independence threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the annual financial statements for the current period and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes public disclosure about the matter.

Landwirtschaftliche Rentenbank Annual Report 2025 91

**Other legal and regulatory requirements**

Report on the Assurance on the Electronic Reproductions of the Annual Financial Statements and of the Management Report Prepared for Publication Pursuant to Section 317 (3a) HGB

**Assurance Opinion**

We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable assurance whether the electronic reproductions of the annual financial statements and of the management report (hereinafter referred to as "ESEF documents") prepared for publication, contained in the file, which has the SHA-256 value 3247ab5f38a35d8bdfc12652546854b2880ebf56deba6e1df72554d0bccf67a7, meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB ("ESEF format"). In accordance with the German legal requirements, this assurance work only covers the conversion of the information contained in the annual financial statements and the management report into the ESEF format, and therefore covers neither the information contained in these electronic reproductions nor any other information contained in the file identified above.

In our opinion, the electronic reproductions of the annual financial statements and of the management report prepared for publication contained in the file identified above meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB. Beyond this assurance opinion and our audit opinions on the accompanying annual financial statements and on the accompanying management report for the financial year from 1 January to 31 December 2025 contained in the "Report on the Audit of the Annual Financial Statements and of the Management Report" above, we do not express any assurance opinion on the information contained within these electronic reproductions or on any other information contained in the file identified above.

**Basis for the Assurance Opinion**

We conducted our assurance work on the electronic reproductions of the annual financial statements and of the management report contained in the file identified above in accordance with Section 317 (3a) HGB and on the basis of the IDW Assurance Standard: Assurance Work on the Electronic Reproductions of Financial Statements and Management Reports Prepared for Publication Purposes Pursuant to Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibilities in this context are further described in the "Auditor's Responsibilities for the Assurance Work on the ESEF Documents" section. Our audit firm has applied the IDW Quality Management Standards.

**Responsibilities of the Executive Directors and the Supervisory Board for the ESEF documents**

Landwirtschaftliche Rentenbank Annual Report 2025 92

The executive directors of the Company are responsible for the preparation of the ESEF documents based on the electronic files of the annual financial statements and of the management report according to Section 328 (1) sentence 4 no. 1 HGB.

In addition, the executive directors of the Company are responsible for such internal control that they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional non-compliance with the requirements for the electronic reporting format pursuant to Section 328 (1) HGB.

The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of the financial reporting process.

**Auditor's Responsibilities for the Assurance Work on the ESEF documents**

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise professional judgement and maintain professional scepticism throughout the assurance work. We also:

● identify and assess the risks of material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.

● obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.

● evaluate the technical validity of the ESEF documents, i.e. whether the file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, in the version in force at the balance sheet date, on the technical specification for this electronic file.

● evaluate whether the ESEF documents enable an XHTML reproduction with content equivalent to the audited annual financial statements and to the audited management report.

Landwirtschaftliche Rentenbank Annual Report 2025 93

**Further Information Pursuant to Article 10 of the EU Audit Regulation**

We were elected as auditor by resolution of the supervisory board on 20 March 2025. We were engaged by the supervisory board on 16 July 2025. We have been the auditor of Landwirtschaftliche Rentenbank, Frankfurt am Main/Germany, without interruption since the financial year 2019.

We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

In addition to the financial statement audit, we have provided to the audited Company and to those entities controlled by the Company the following services that are not disclosed in the annual financial statements or in the management report of the audited Company:

● project-based audit of the project "CRR III Umsetzung" (*CRR III implementation*),

● performance of agreed-upon procedures in accordance with ISRS 4400 (Revised) concerning the partial

● invoice 2023 on the federal programmes,

● issuance of comfort letters and other assurance services,

● audit related to the utilisation of credit claims as eligible collateral (MACCs),

● confirmation of the questionnaire for contributions to the deposit guarantee fund of the Association of German Public Sector Banks (Bundesverband Öffentlicher Banken Deutschlands e.V.),

● training courses for committee members and executive employees, and

● voluntary audit of subsidiaries as well as audit of annual accounts of the Federal Republic's Special Purpose Fund which is administered by Rentenbank.

**Other matter – use of the auditor's report**

Our auditor's report must always be read together with the audited annual financial statements and the audited management report as well as with the assured ESEF documents. The annual financial statements and the management report converted into the ESEF format – including the versions to be submitted for inclusion in the Company Register – are merely electronic reproductions of the audited annual financial statements and the audited management report and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are to be used solely together with the assured ESEF documents made available in electronic form.

**German public auditor responsible for the engagement**

The German Public Auditor responsible for the engagement is Martina Mietzner.

Landwirtschaftliche Rentenbank Annual Report 2025 94

Frankfurt am Main/Germany, 2 March 2026

Deloitte GmbH

Wirtschaftsprüfungsgesellschaft

Martina Mietzner Martin Maurer <br> Wirtschaftsprüferin Wirtschaftsprüferin <br> (German public auditor) (German public auditor)

Landwirtschaftliche Rentenbank Annual Report 2025 95

**Governing bodies**

(as of 12 January 2026)

**Management Board and Supervisory Board**

The members of the Management Board and the Supervisory Board are listed on pages 116 to 118 of this annual report.

**General Meeting**

**Appointed by the State of Baden-Württemberg:**

Bernhard Bolkart Juliane Vees

**Appointed by the Free State of Bavaria:**

Maria Hoßmann Stefan Köhler

**Appointed by the State of Berlin:**

Dinah Hoffmann

**Appointed by the State of Brandenburg:**

Julia Bar-Tal Henrik Wendorff

**Appointed by the Free Hanseatic City of Bremen:**

Ralf Hagens

**Appointed by the Free and Hanseatic City of Hamburg:**

Heinz Behrmann

**Appointed by the State of Hesse:**

Stefan Emert Stefan Schneider

**Appointed by the State of Mecklenburg-Western Pomerania:**

Dr Kathrin Marianne Naumann Harald Nitschke

**Appointed by the State of Lower Saxony:**

Elisabeth Brunkhorst Ottmar Ilchmann

**Appointed by the State of North Rhine-Westphalia:**

Bernhard Conzen Karl Werring

Landwirtschaftliche Rentenbank Annual Report 2025 96

**Appointed by the State of Rhineland-Palatinate:**

Eberhard Hartelt Michael Prinz zu Salm-Salm

**Appointed by the State of Saarland:**

Peter Hoffmann

**Appointed by the Free State of Saxony:**

Robert Otto Dr Anna Catharina Voges

**Appointed by the State of Saxony-Anhalt:**

Jochen Dettmer Olaf Feuerborn

**Appointed by the State of Schleswig-Holstein:**

Malte Jacobsen Kirsten Wosnitza

**Appointed by the Free State of Thuringia:**

Joachim Lissner Dr Wolfgang Peter

**Trustee:**

Alois Bauer Ministerial Director <br> Federal Ministry of Agriculture, Food <br> and Regional Identity

Deputy trustee:

Martinus Wejwer Senior Ministerial Official <br> Federal Ministry of Agriculture, Food <br> and Regional Identity

Landwirtschaftliche Rentenbank Annual Report 2025 97

**Report of the Supervisory Board**

The Supervisory Board and its committees performed the duties assigned to them by law and by Rentenbank's Articles of Association and corporate governance principles and they advised and supervised the Management Board on the proper conduct of its work during the past financial year.

The Supervisory Board assured itself that the Management Board and Supervisory Board observed the Public Corporate Governance Code of the Federal Republic of Germany in the version of 6 November 2024. It will continually see to it that the Code is observed and implemented. The Supervisory Board approves the Corporate Governance Report, including the Statement of Compliance.

The annual financial statements and additionally the management report at 31 December 2025 prepared by the Management Board in accordance with the regulations of the German Commercial Code have been audited and provided with an unqualified audit opinion by Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Frankfurt am Main/Germany. The Supervisory Board has acknowledged and concurred with the audit results.

The Supervisory Board has reviewed the annual financial statements, including the management report, and the Annual Report 2025 of Landwirtschaftliche Rentenbank. It hereby adopts Rentenbank's 2025 annual financial statements and management report.

Of the net income of euro 39,000,000 presented in the income statement, an amount of euro 19,500,000 will be allocated to the principal reserve pursuant to Section 2 (2) of Rentenbank's Governing Law. The Supervisory Board resolves to utilise the remaining distributable profit of euro 19,500,000 in such a way that euro 9,750,000 will be allocated to the Federal Republic of Germany's Special-Purpose Fund and euro 9,750,000 to the Promotional Fund.

Frankfurt am Main/Germany, 18 March 2026

THE SUPERVISORY BOARD OF LANDWIRTSCHAFTLICHE RENTENBANK

![](tm2612034d1_ex99-eimg009.jpg)

The Chairman

Joachim Rukwied

Landwirtschaftliche Rentenbank Annual Report 2025 98

## Ex-99.F

**EXHIBIT (f)**

**Consent of Independent Auditor**

To the Management Board

Landwirtschaftliche Rentenbank:

We consent to the incorporation by reference in the registration statement (No. 333-291690) filed under Schedule B of Landwirtschaftliche Rentenbank and the related prospectus of our report dated March 2, 2026, with respect to the annual financial statements of Landwirtschaftliche Rentenbank, included in Exhibit (e) to this Annual Report on Form 18-K for the year ended December 31, 2025.

/s/ Deloitte GmbH Wirtschaftsprüfungsgesellschaft

Frankfurt am Main, Germany

May 8, 2026

## Ex-99.G

**EXHIBIT (g)**

**Consent of the Federal Republic of Germany**

On behalf of the Federal Republic of Germany, I hereby consent to the making of the statements with respect to the Federal Republic of Germany included in the Annual Report on Form 18-K of Landwirtschaftliche Rentenbank for the year ended December 31, 2025, and to the incorporation by reference of such information in the Registration Statement under Schedule B (Registration No. 333-291690) of Landwirtschaftliche Rentenbank filed with the Securities and Exchange Commission of the United States of America.

May 8, 2026

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| Federal Republic of Germany | Federal Republic of Germany |
| By: | /s/ Dr. Markus Hörmann |
|  | Dr. Markus Hörmann |
|  | Ministerialrat, Federal Ministry of \ Finance, Berlin |

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