German Budget Committee Approves 2027 Plan With Higher Spending and Borrowing

Total budget expenditure is now estimated at 561 billion euros, while the net borrowing requirement is estimated at 123 billion euros.

Expenditure has thus increased by 5.5 billion euros, while the borrowing requirement forecast has risen by 4.25 billion euros.

Under this proposal, the borrowing requirement is approximately 25 billion euros higher than in the 2026 budget.

The committee proposal ends months of political wrangling among German parliamentarians over how much to invest in defence, infrastructure, welfare and economic support programmes.

The proposal is also due to be approved by the Bundestag in November and then by the Federal Council.