Exclusive-German draft budget foresees more than €203 billion in borrowing, document shows
Key Highlights of the German 2027 Draft Budget
By Sabine Siebold
Borrowing and Spending Projections
BERLIN, July 3 (Reuters) - The German draft budget for 2027 foresees borrowing of more than €203 billion ($232 billion), up from total borrowing of €196.5 billion in the key targets approved by the government in April, according to the budget draft seen by Reuters on Friday.
Comparison with Previous Years
This compares with €50.5 billion in 2024 under the previous government, before Germany threw off decades of fiscal conservatism last year in an effort to revive its moribund economy.
Medium-Term Financial Framework
The 2027 draft budget, part of a medium-term financial framework extending to 2030, allocates total spending of €555.4 billion, more than the €543.3 billion approved in April.
Investment Increases
Total investment will be at €117.5 billion, nearly €40 billion euros more than what was originally planned. This increase comes after the approval of a €500 billion fund for infrastructure and a rule change that allows defence spending to be excluded from debt limits.
Defence and Security Spending
Core Defence Budget
The budget features a strong commitment to defence, with core defence spending set to climb to €109.8 billion in 2027 from €82 billion in 2026 in the core budget.
Additional Security-Related Expenditures
Adding €11.6 billion in funds for Ukraine and other security-related spending such as civil protection, intelligence and IT protection, defence spending goes up to €130.1 billion.
($1 = 0.8740 euros)
(Reporting by Sabine Siebold, Maria Martinez and Holger Hansen, Editing by Friederike Heine)
