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German approves key figures for the 2027 budget

Published by Global Banking & Finance Review

Posted on April 29, 2026

1 min read

· Last updated: April 29, 2026

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Germany Approves Key Figures Including Borrowing and Defence in 2027 Budget

Key Details of Germany's 2027 Budget Approval

By Maria Martinez

Government Approval and Borrowing Plans

BERLIN, April 29 (Reuters) - The German government approved on Wednesday the key figures for the 2027 budget, which includes total borrowing of 196.5 billion euros ($229 billion) as it aims to bolster infrastructure and defence.

Defence Spending Commitments

Increase in Defence Budget

The budget also features a strong commitment to defence spending, which is set to climb to 105.8 billion euros in 2027 from 82.7 billion euros in 2026 in the core budget.

Budget Approval Process

Timeline for Parliamentary Discussions

Cabinet and Parliamentary Steps

Following the agreement on the key points on Wednesday and cabinet approval of the first draft in July, budget discussions will commence in parliament in September, with final approval anticipated by year end.

(Reporting by Maria Martinez and Holger Hansen; editing by Matthias Williams)

Key Takeaways

  • Planned total new borrowing of €196.5 billion in 2027—a steep rise from €50.5 billion in 2024 (globalbankingandfinance.com)
  • Defence spending in the core budget jumps to €105.8 billion in 2027, from €82.7 billion in 2026 (globalbankingandfinance.com)
  • New borrowing will fund infrastructure and defence, supported by a €500 billion special fund exempt from Germany’s debt brake rules (bundesfinanzministerium.de)

References

Frequently Asked Questions

How much is Germany planning to borrow in the 2027 budget?
Germany's 2027 budget includes total borrowing of 196.5 billion euros ($229 billion).
What is the planned defence spending for 2027 in Germany?
Defence spending in Germany is set to increase to 105.8 billion euros in 2027.
When will the German parliament discuss the 2027 budget?
Parliamentary discussions on the 2027 German budget will commence in September.
When is the final approval of the 2027 German budget expected?
Final approval of the 2027 German budget is anticipated by year end.

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