Germany's budget committee finalised the draft budget for 2026 with €8 billion more in debt than previously expected, people familiar with the matter said today.
The draft also features high investment levels aimed at reviving the economy after two years of contraction, a strong commitment to defence spending, and an increase of £3 billion in Ukraine aid.
The draft budget goes to a full parliamentary vote on November 28.
The core budget, with total spending of €524.5 billion, includes €58.3 billion in investments, according to a document seen by Reuters, with small increases from a draft passed by the cabinet at the end of July.
The investment surge is possible thanks to a special €500 billion infrastructure fund and an exemption from debt rules for defence spending approved in March.
Germany's debt brake limits borrowing to 0.35% of gross domestic product and special funds are excluded from it.
Including investments through special funds, total investment goes up to €126.7 billion.
The core budget envisages borrowing of €97.9 billion in 2026, according to the document, up from €89.8 billion in the draft.
Adding borrowing through the special funds for infrastructure and defence, total new debt will be well over €180 billion, a level only surpassed during the coronavirus pandemic in 2021 with €215 billion.
The budget committee session began yesterday afternoon and wrapped up weeks of talks by bundling last-minute amendments and fixing final spending and revenue plans in a session that lasted more than 16 hours and finished early this morning.
