German Cabinet Approves 2027 Draft Budget, Hikes Defence, Investment Spending
Germany's 2027 budget draft plugs a €34 billion hole with increased borrowing, while boosting defence spending by 33% to €110 billion amid global tensions.
- On Monday, Germany's cabinet approved the first draft of the 2027 budget, ramping up investment and defence spending to shield the sluggish economy from war-related energy shocks and years of underinvestment.
- German Finance Minister Lars Klingbeil defended the borrowing strategy, saying, "We cannot defend Germany against Putin with a balanced-budget policy," while citing three decades of neglected defence capabilities.
- The 2027 draft budget allocates total spending of €555.4 billion, with total borrowing amounting to €203.6 billion under looser fiscal rules designed to fund defence and infrastructure projects.
- BDI chief executive Tanja Goenner warned that by 2030, nearly one in five euros of tax revenue could be tied up in interest payments as debt levels rise sharply.
- Parliament will begin discussing the draft budget in September, with final approval anticipated by year-end, though a funding gap of around €109 billion remains for 2028 onwards.
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77 Articles
The German Government approved the draft state budget for 2027, which envisages an increase of 32.6% in defence spending, to an amount of 109,7 billion euros, announced the Vice-Chancellor. Lars Klingbeil, also Minister of Finance of the government led by Friedrich Merz, stressed in a press conference on Monday that Germany is fulfilling its responsibilities within NATO, an organization that meets on Tuesday and Wednesday at a summit in Ankara, …
"We cannot defend ourselves against Vladimir Putin with a balanced budget," said German Vice-Chancellor and Finance Minister Lars Klingbeil. "We must make up for the three decades during which our army was hampered by budget constraints as quickly as possible," he added. According to the government's plan, total German budget spending will reach €555.4 billion by 2027, of which €109.7 billion, or about 20 percent, will be allocated to defense. T…
The opposition, environmental organizations, and industry are already reacting to the draft budget. The post Germany: Draft 2027 budget approved - Increase in defense spending, new taxes, cuts appeared first on in.gr.
The government approves the draft budget 2027: total public expenditure to 555 billion, with 200 billion debt. The appropriations for defence will reach the NATO target of 3.5% of GDP already in 2029
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