SITUATION REPORT

Germany: Draft Budget Proposes Increase in Borrowing To Fund Infrastructure, Defense

Sep 24, 2025 | 16:23 GMT

Germany's coalition government presented its 2026 draft budget to parliament, proposing 174.3 billion euros ($204 billion) in borrowing (over three times the 2024 level), a record 126.7 billion euros in investment spending (10% higher than 2025 following an already sharp increase this year), and around 117.2 billion euros in defense spending including special funds, equal to roughly 2.8% of GDP, Reuters reported on Sept. 23....

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