Germany’s 2027 budget: A record €561 billion and a mountain of debt

Germany’s governing CDU/CSU and SPD coalition has approved a draft 2027 federal budget after nearly 16 hours of negotiations. It proposes record spending of about €561 billion, with borrowing needed to cover a €123 billion shortfall, and is due for a final Bundestag vote on 27 November.

Including borrowing through existing special funds for defence and infrastructure, total borrowing is expected to exceed €210 billion, the second-highest level in Germany’s history after the pandemic peak in 2021. The budget reflects pressure from Russia’s war against Ukraine, economic weakness, ageing-related costs, infrastructure repairs and the energy transition; opposition parties criticised its debt and questioned its long-term prospects.