Germany news: Federal Cabinet to approve draft 2027 budget
07/06/2026 July 6, 2026 German Cabinet to approve draft for 2027 budget The federal Cabinet is set to approve the government's draft for the 2027
07/06/2026 July 6, 2026 German Cabinet to approve draft for 2027 budget The federal Cabinet is set to approve the government's draft for the 2027 budget on Monday. The government plans to spend €555.4 billion ($634.8 billion) next year, significantly more than the current year's €524.5 billion. New borrowing is expected to total more than €200 billion, according to the draft seen by news agencies.
That would be a bigger increase than initially planned. A significant spending boost is planned for the Bundeswehr, Germany's armed forces. The draft includes around €109.7 billion for defense— about a third more than the 2026 budget. Total investment will be €117.5 billion, almost €40 billion more than originally planned. This increase comes after the approval of a €500 billion fund for infrastructure and a rule change that allows defense spending to be excluded from debt limits.
Social Democrat leader and Finance Minister Lars Klingbeil defended the planned increase in new borrowing. "You cannot defend yourself against Putin with a balanced budget," he told public broadcaster ARD on Sunday, referring to the Russian president and his war in Ukraine. Budget discussions are set to commence in parliament in September after the summer recess.
Final approval is expected by the end of the year.
The BriefWire