Germany's budget committee agreed on a 2027 package proposing €561 billion in spending and €210.4 billion in new borrowing, the second-highest total since World War Two. The package can now be passed by parliament.
Germany's budget committee finalised the 2027 budget after weeks of negotiations. The package proposes €561 billion in spending and €210.4 billion in new borrowing, just below the €215.4 billion record set in 2021 during the COVID-19 pandemic.
The coalition dropped a proposed tax on plastic packaging and delayed a tax on sweetened drinks until 2028. It also delayed a planned electricity-tax cut and rolled back plans to cut benefits for children in low-income families.
The budget includes about €123 billion in new borrowing from the core budget, excluding additional borrowing authorised under special measures for infrastructure and defence. Opposition Greens budget spokesperson Sebastian Schaefer called the package a “massive smokescreen” and accused the government of concealing borrowing and spending on basic income support.
