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🇩🇪 Germany /Economy & Trade

Bundestag Budget Week Begins in Turbulent Times: What Is in the 2027 Budget

From Die Zeit · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire From a news agency New plan
  • Finance Minister Lars Klingbeil is presenting the government’s 2027 budget proposal to the Bundestag after the AfD’s election victory in Saxony-Anhalt intensified pressure on the coalition.
  • The draft proposes 555.4 billion euros in spending, higher borrowing and more defense funding, including 11.6 billion euros for support to Ukraine.
  • Parliament will debate the ministerial budgets this week, with a general debate on Wednesday and a final vote expected in November.

Germany’s 2027 budget debate opens under political pressure. Shortly after the AfD’s election victory in Saxony-Anhalt sent shock waves through federal politics, Finance Minister Lars Klingbeil is bringing the government’s draft budget to the Bundestag.

Parliament will debate the spending plans of individual ministries through Friday. Wednesday’s traditional general debate is expected to pit the center-right and center-left coalition against the opposition. The Bundestag is scheduled to approve the budget in November, although lawmakers usually make changes to the government’s draft.

Klingbeil’s plan calls for 555.4 billion euros in spending in 2027, up from 524.5 billion euros in the current year. The largest individual budget would go to the Labor and Social Affairs Ministry, with about 201.5 billion euros, including major payments to the pension insurance system.

We have to make up in the shortest possible time for three decades in which our Bundeswehr was cut back.

· Lars KlingbeilThe finance minister used the military’s past reductions to defend higher borrowing.

The plan also envisions significantly higher borrowing. Net new borrowing under the debt brake would reach 118.7 billion euros, compared with a planned 98 billion euros this year. Borrowing from special funds for infrastructure, climate neutrality and the military would push total new debt above 200 billion euros in 2027, rising to 219.5 billion euros by 2030. Infrastructure funding is intended in part to repair aging bridges, roads and the rail network.

Defense spending would rise sharply. The core budget allocates about 109.7 billion euros to defense in 2027, one-third more than in the 2026 budget, with additional money coming from the military special fund. About 11.6 billion euros is earmarked to support Ukraine in its war against Russia. Klingbeil defended the borrowing in July, saying, “We have to make up in the shortest possible time for three decades in which our Bundeswehr was cut back.” He added, “We cannot defend ourselves against Putin with a balanced budget.”

The government also expects to raise more revenue through a new plastic levy and higher taxes on tobacco, alcohol and sparkling wine. A sugar tax is also planned, though details remained incomplete in the supplied report.

We cannot defend ourselves against Putin with a balanced budget.

· Lars KlingbeilKlingbeil linked the proposed debt increase to the security situation in Europe and the threat from Russia.
About this summary

Originally published by Die Zeit in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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