The German government cabinet approved a draft budget for 2026 on Wednesday, paving the way for hundreds of billions of euros in spending on infrastructure and defense, according to reports from DPA.
The proposed budget by Finance Minister Lars Klingbeil foresees around €520 billion in spending and €174 billion in new debt, reports Radio Free Europe.
The newly formed German government, which took office in May, has pledged a significant increase in investments to modernize the country’s aging infrastructure and to rearm the German military in response to shifting security dynamics.
The 2025 budget, which was approved by the cabinet in June, is still under review and is expected to be voted on in parliament after the summer recess.
The 2026 draft budget emphasizes investment priorities in economic growth, employment, and modernization of Germany’s systems and capabilities.
However, Finance Minister Klingbeil warned this week that significant austerity measures are expected starting in 2027, with a federal budget shortfall of approximately €172 billion projected.
