Published by Global Banking & Finance Review®
Posted on May 14, 2025
2 min readLast updated: January 23, 2026
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Germany's 2026 budget draft is set for July cabinet approval, with parliamentary discussions in September. A provisional budget is in place due to a coalition collapse.
By Maria Martinez
BERLIN (Reuters) -Germany's draft budget for 2026 should be approved by the cabinet in July and discussions on it should start in parliament in September, Finance Minister Lars Klingbeil said on Wednesday.
The budget for 2025 should also be discussed in parliament after the summer break. To comply with this goal, the minister aims to have a draft budget ready in June which could be approved by the cabinet on June 25.
After former Chancellor Olaf Scholz's coalition collapsed in November, there was no time to pass the 2025 budget. Therefore Germany has had a provisional budget since the start of the year.
Klingbeil added that he wants to set up an expert commission on reforming the debt brake as soon as possible. A reform has been promised by the end of 2025.
The government included in its coalition agreement the establishment of an expert commission with the participation of the lower house of parliament and federal states to develop a proposal for modernising the debt brake, which restricts public borrowing to 0.35% of gross domestic product.
The government is also finishing the law for a 500 billion euros investment fund in infrastructure, Klingbeil said, which was approved by Germany's parliament in March as part of a massive spending surge.
(Reporting by Maria Martinez and Christian Kraemer; Editing by Madeline Chambers)
The main topic is the approval and discussion timeline for Germany's 2026 draft budget.
A provisional budget exists because the previous coalition collapsed, preventing the 2025 budget approval.
The debt brake reform aims to modernize borrowing limits, with a proposal expected by 2025.
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