By Maria Martinez

BERLIN (Reuters) -German debt is expected to increase to 80.25% of gross domestic product by 2029 from 62.5% last year due to a rise in defence and infrastructure spending, according to the country’s stability council, which coordinates federal and state finances.

European Union fiscal rules limit government deficits to 3% of GDP and debt to 60% of GDP.

By 2026, the government deficit could rise to as much as 4.75% of GDP, before falling again to 3.75% of GDP in 2029, the stability council said after its meeting on Tuesday.

Germany requested a “national escape clause”, or exemption, from EU deficit rules allowing member states to raise defence spending without any disciplinary steps that would normally kick in once a deficit exceeds 3% of GDP.

Nevertheless, the stabi

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