economy

April 28, 2026

Germany Plans Borrowing of Around 200 Billion Euros Next Year

Germany plans new borrowing of almost 200 billion euros in 2027 due to rising military costs and interest rates, according to a draft budget prepared by the government in Berlin.

Germany Plans Borrowing of Around 200 Billion Euros Next Year

TL;DR

  • Germany plans new borrowing of nearly €200 billion in 2027.
  • The borrowing covers the regular state budget and special funds for defense and infrastructure.
  • Regular budget borrowing is set at €110.8 billion, with an additional €85.7 billion through off-budget funds.
  • Total federal government spending is projected to reach €543.3 billion in 2027, growing to €625.1 billion by 2030.
  • Key drivers for increased spending are defense and interest costs.
  • The military budget is expected to rise to €105.8 billion in 2027 and nearly €180 billion by 2030.
  • Interest costs will increase to €42.7 billion next year and more than double by the end of the decade.
  • Investments are planned at €118.5 billion in 2027.
  • A package of structural reforms aiming for €20 billion in savings has been announced, with potential measures including subsidy cuts, social system reforms, and new taxes.

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