US EditionGermany updates: Cabinet approves 2026 draft budget
GERMANY, JUL 30 – Defense spending rises from €62.4 billion to €82.7 billion, enabling expansion of armed forces and aiming to reach 3.5% of GDP contribution by 2029, officials said.
- On Wednesday, Vice Chancellor and Finance Minister Lars Klingbeil presented a draft budget with defense spending rising by 32.5% to 82.7 billion euros and total expenditures at 520.5 billion euros, a 3.5% increase over 2025.
- Amid economic headwinds, Destatis reported Germany's GDP shrank 0.1% in the second quarter, highlighting ongoing economic contraction.
- With the draft plan, Boris Pistorius noted the armed forces will access 25.5 billion euros from a special fund, raising total resources to over 108 billion euros next year.
- Klingbeil warned this week that significant austerity measures will likely be needed starting in 2027, with a funding gap of approximately 172 billion euros through 2029.
- The draft budget must now go through the Bundestag, with first readings scheduled for Sept. 22 to 26 and final approval by year-end, Klingbeil warned.
53 Articles
53 Articles
The draft budget for the federal budget of 2026 stands out not only through high investments in the economy and defence. Gaps remain and promises are unfulfilled.
Germany's 2026 budget will focus on economic growth and job preservation, German Finance Minister Lars Klingbeil stressed when presenting the draft. Have Germany's economic problems reached their peak?
This strengthening will allow the Armed Forces to hire up to 10,000 additional soldiers next year. 2,000 civilian posts will also be created in the structure of the German Armed Forces.
The cabinet has launched the draft budget for 2026 - including high debts. Minister of Finance Klingbeil defends the plans and refers to investments. At the same time, he announces that everyone must save 2027.
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