Germany’s draft 2027 budget showed the government planned to add more than 203 billion euros in new borrowing, higher than previously expected and well above the 2024 level.
According to Jin10, the draft budget put total spending at about 555.4 billion euros, with investment rising to 117.5 billion euros, mainly for infrastructure upgrades such as transport, digitalization, and hospitals.
Defense spending was set to increase significantly, with the core budget reaching 109.8 billion euros. Including aid to Ukraine and other security spending, total defense-related outlays were about 130.1 billion euros.
The draft said Germany would accelerate infrastructure and armaments investment by expanding borrowing and using special funds to respond to economic weakness and geopolitical risks.
It also warned that if disruptions to the Strait of Hormuz or oil supplies persisted, Germany’s economy would be significantly affected.
The budget was expected to be submitted to parliament for review in September, with approval to be completed before the end of the year.
Germany’s 2027 Draft Budget Plans Over 203 Billion Euros in New Borrowing as Defense Spending Rises
2026-07-03 16:31:52
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