Germany Finalizes 2027 Budget With 561 Billion Euro Spending

Germany's budget committee finalized the 2027 budget on November 13, proposing total spending of 561 billion euros. The plan includes 210.4 billion euros in new borrowing, the highest amount since World War Two excluding the 2021 pandemic peak.

To reach an agreement between Friedrich Merz and his conservative Christian Democrats and the centre-left Social Democrats, the coalition removed a proposed tax on plastic packaging and delayed taxes on electricity and sugared drinks. The government also reversed planned benefit cuts for children of low-income families. The coalition intends to allocate these funds toward the military and core infrastructure.

Opposition parties, including the Greens, criticized the package. Sebastian Schaefer, the budget spokesperson for the Greens, characterized the plan as a "massive smokescreen" and accused the government of using accounting tricks to hide borrowing and spending on basic income support.