Germany’s budget planning is being heavily influenced by rising defense expenditures. According to government circles, the planned defense budget for 2027 is set at €105.8 billion, representing a significant increase of about 75 percent compared to 2025.
This upward trend continues steadily into subsequent years. Planned defense spending rises to €149.9 billion in 2028, €158.9 billion in 2029, and reaches €179.9 billion in 2030.
These defense costs are factored into the overall national budget, which is projected to swell from €543.3 billion in 2027 to €586.9 billion in 2028, €588.9 billion in 2029, and €625.1 billion in 2030. While defense spending increases substantially, the remaining capital required for other expenditures in 2030 is estimated to be only slightly higher than in 2025.
Compounding these needs are rising interest costs. These are planned to increase from €29.9 billion in 2025 and €30.3 billion in 2026 to €42.7 billion in 2027, and are expected to more than double to €78.7 billion by 2030.
The government’s financial projections indicate that these growing expenses will be offset by a combination of rising revenues and increased borrowing. National revenues are expected to climb to €524.5 billion in 2026 and €543.3 billion in 2027, before reaching €586.9 billion in 2028, €588.9 billion in 2029, and €625.1 billion in 2030.
However, the finance ministry also forecasts a sharp rise in net borrowing. Where Germany borrowed €66.9 billion in 2025, the planned amounts for the following years are considerable: €98 billion in 2026, €110.8 billion in 2027, €134.9 billion in 2028, and potentially €137.1 billion in 2029. For the financial plan in 2030, net borrowing is expected to hit €152.7 billion-more than double the amount from the previous year.
According to reports from the finance ministry, the government’s core fiscal priorities-increased investment for growth, structural reforms to boost competitiveness, and overall budget consolidation-are planned to remain largely unchanged.
Regarding the timeline, the budget for 2027 is scheduled for a cabinet decision on July 6th. The discussions in the Bundestag are slated for the first reading (September 7th-11th) and the first round in the Bundesrat (September 25th). The Bundestag will hold a committee session on November 12th, followed by the second budget week from November 23rd to 27th. Finally, the budget is scheduled for final approval by the Bundesrat on December 18th.