Germany news: Parliament agrees on debt-laden 2027 budget

The budget committee in the Bundestag worked into the night to finalize next year's spending plans, which include levels of new debt only eclipsed once, at the height of the COVID pandemic. The marathon session lasted more than 15 hours, concluding early Friday morning in Berlin.

Record borrowing

Including all spending plans in the core budget and from special funds for infrastructure and military modernization, new debt constitutes around a third of total spending. The plan is to take out new debt worth just over €210 billion ($233 billion), while taking in a little less than €400 billion in taxes.

This represents the second-highest level of new debt in post-war German history. Only the 2021 budget at the height of the COVID pandemic recorded higher borrowing, at €215.4 billion.

Budget breakdown

The finalized budget allows the government to move forward with its spending plans without major complications. Lawmakers have already indicated areas where they see room for further improvement or alteration in future revisions.

The substantial borrowing marks a significant departure from Germany's previous fiscal policies, including the 'debt brake' and 'black zero' approach that aimed to avoid new debts following the eurozone debt crisis.