14.11.2025, 15:58 | By TIN24 Editor Amit Alhat, with dpa inputs from Theresa Münch, Sascha Meyer and Tom Tutton
Germany’s parliament is edging closer to approving a landmark €524.5 billion federal budget for 2026 after the Bundestag’s budget committee cleared the proposal in Berlin on Friday. The plan, which includes record borrowing of €180 billion, will go to a final parliamentary vote later this month.
After marathon negotiations, Chancellor Friedrich Merz’s coalition overcame internal divisions and added roughly €4 billion in new spending. Finance Minister Lars Klingbeil hailed the outcome as proof that the coalition is functioning effectively, emphasizing investments in economic recovery, infrastructure, and national security.
“Germany’s growth outlook is strengthening, and this budget underlines our confidence in the country’s direction,” Klingbeil declared.
The 2026 spending plan authorizes nearly €98 billion in new debt for the core budget—€8 billion more than initially planned. Additional loans from special funds earmarked for defence and infrastructure projects will elevate the total borrowing to more than €180 billion.
However, opposition lawmakers have sharply criticized the plan. The Greens’ Sebastian Schäfer called it a “missed opportunity for sustainable investment,” while The Left’s Dietmar Bartsch argued it favors armaments over social support. The far-right AfD denounced what it labeled “gigantic debts.”
The final Bundestag vote is scheduled for November 25–28. Late changes include an increase in German military aid to Ukraine, raising it to €11.5 billion—Berlin’s largest contribution to Kyiv to date—and additional funds to stabilize care insurance without burdening workers.
Looking ahead, Finance Minister Klingbeil faces steeper challenges as early projections warn of a €22 billion shortfall in the 2027 budget, prompting expectations of austerity measures early next year.
Author: The India News 24
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