The German federal cabinet is set to approve the government's draft for the 2027 budget on Monday. The government plans to spend €555.4 billion ($634.8 billion) next year, significantly more than the current year's €524.5 billion.

New borrowing is expected to total more than €200 billion, according to the draft seen by news agencies, a bigger increase than initially planned. A significant spending boost is planned for the Bundeswehr, Germany's armed forces, with around €109.7 billion for defense—about a third more than the 2026 budget.

Total investment will be €117.5 billion, almost €40 billion more than originally planned. This increase comes after the approval of a €500 billion fund for infrastructure and a rule change allowing defense spending to be excluded from debt limits.

Social Democrat leader and Finance Minister Lars Klingbeil defended the planned increase in new borrowing. "You cannot defend yourself against Putin with a balanced budget," he told public broadcaster ARD on Sunday, referring to Russian President Vladimir Putin and his war in Ukraine.

Budget discussions are set to commence in parliament in September after the summer recess, with final approval expected by the end of the year. Meanwhile, three men are set to stand trial over the discovery of one of Germany's largest illegal arms caches in the western city of Remscheid.

Source: www.dw.com