Germany news: Parliament agrees on debt-laden 2027 budget

Germany’s Bundestag budget committee has agreed spending plans for 2027 after a session lasting more than 15 hours. The agreement matters because it includes an exceptionally large borrowing programme, signalling a substantial shift from years of emphasis on limiting new debt.

The plan combines the core budget with special funds for areas such as infrastructure and military modernisation. It envisages just over €210 billion in new borrowing, about a third of total planned spending, alongside tax receipts of slightly less than €400 billion. This would be Germany’s second-highest level of new debt in the post-war era, below the €215.4 billion borrowed in 2021 during the COVID pandemic.