Germany’s Budget Committee approved a record €560.9 billion spending plan for 2027, including €210.4 billion in total new borrowing, and the draft still needs a final vote in parliament.
The committee agreed early Friday, November 13, after more than 15 hours of talks between Chancellor Friedrich Merz’s conservative bloc and its center-left Social Democrat coalition partners. The borrowing total, which combines the core budget and special funds, is the second-highest in postwar Germany. It is just below the €215.4 billion borrowed in 2021 during the COVID-19 pandemic.
Nearly €123 billion of the planned borrowing comes from the core budget. Additional loans are set aside for infrastructure and defense. The plan sets aside about €61.9 billion for investment.
Defense spending is also due to rise sharply. Coalition negotiators dropped or postponed some proposed measures, including taxes on plastics and sweetened drinks. They also delayed planned welfare cuts to reach agreement.
A proposed broad reduction in electricity taxes remains unresolved. The budget is scheduled for a final vote in the Bundestag on November 27.