The German Bundestag commenced its second week of budget deliberations on Tuesday, with Finance Minister Lars Klingbeil presenting the proposed 2026 budget bill. During the presentation, Klingbeil underscored the necessity for extensive reforms within Germany to bolster its position within Europe. He emphasized the imperative to proactively pursue changes and make decisive choices, rejecting complacency.
“To ensure Germany’s strength and leadership in an independent Europe, we must make courageous, sometimes challenging, decisions here at home” the Minister stated, indicating a commitment to such actions over the coming years.
The proposed budget outlines planned expenditures of approximately €520.5 billion (compared to €502.5 billion in 2025). Designated investments within the budget are set at €56.1 billion, a decrease from the €62.7 billion seen in the previous year. The net borrowing requirement is projected at €89.9 billion, surpassing the previous year’s level of €81.8 billion.
The draft budget proposes a net borrowing requirement approximating the legally permissible limit of €35.6 billion according to the Grundgesetz (Basic Law). An additional €97.4 billion in new debt is justified through exceptional provisions. These exceptions specifically pertain to expenditures within the security and defense sectors, which are being temporarily excluded from the constraints of the Grundgesetz’s debt rules.
