Germany, long the poster child for fiscal restraint in Europe, just went on a spending spree. The German cabinet approved a draft 2027 federal budget projecting new net borrowing of more than €203 billion ($232 billion).
Total planned spending clocks in at roughly €555.4 billion. Total planned investment across the budget hits €117.5 billion.
The numbers behind the spending pivot
The €203 billion borrowing figure already blew past expectations. Back in April 2026, projections pegged new borrowing at €196.5 billion. The final draft came in roughly €6.5 billion higher.
The borrowing breaks down into three buckets. The core budget accounts for €118.7 billion. An infrastructure fund contributes €54.9 billion. And a special defense fund adds another €30 billion on top.
