Germany’s federal budget for next year has been finalised. The Bundestag’s Budget Committee reached an agreement during its final adjustment meeting, making the last changes to the draft budget.
According to Green Party budget politician Sebastian Schäfer, who spoke to the AFP news agency on Friday morning, the federal government plans total spending of €560.9 billion under the core budget. This is higher than the €555.4 billion originally planned by Finance Minister Lars Klingbeil (SPD), and also exceeds spending in the current year's budget.
The figures also show a significant increase in planned borrowing. Under the newly agreed budget, net borrowing is expected to reach €122.972 billion next year, compared with €98 billion this year. Including the debt-financed special funds for infrastructure and climate neutrality, as well as for the German armed forces, total new borrowing is expected to reach approximately €210.413 billion next year.
This figure is set to rise steadily over the coming years, resulting in annual interest payments running into tens of billions of euros.
The federal government justifies the high spending figures primarily by pointing to the international economic and security situation, including the consequences of the wars in the Middle East and Ukraine. According to the government, these developments require massive investments in Germany's defence capabilities.
"The 2027 federal budget is itself becoming a major risk to the future," Schäfer told AFP. "Instead of investing consistently in infrastructure, climate protection and economic strength, the coalition is abusing the special fund to plug holes in its budget," the Green Party politician criticised. He added: "This government is taking on new debt without creating a new future."
The Chancellor had "spent months putting a reduction in electricity tax on display, only to fail to deliver". "With this budget, the coalition is undermining confidence in public finances, harming economic growth, squandering opportunities for the next generation and preventing people's lives from becoming more affordable," Schäfer said.
Left Party politician Dietmar Bartsch also voiced strong criticism of the agreement. "The Chancellor wanted to reduce electricity tax. This budget does not even deliver that for citizens," Bartsch told AFP. "This is nothing less than a slap in the face from the Vice-Chancellor to the Chancellor, who once again comes across as a Chancellor of announcements."
According to Bartsch, the coalition has "lost its way in a labyrinth of debt that brings citizens just one thing: astronomical interest payments and rising taxes in the coming years, alongside cuts in spending".
The Left Party's budget politician added: "The best thing for this country's ability to secure its future would be for Lars Klingbeil not to present another budget. What has been done in less than two years is becoming increasingly difficult to correct."
On Wednesday evening, the CDU/CSU and SPD had already reached agreements on several key disputed issues ahead of the decisive deliberations on the 2027 federal budget. The promised reduction in electricity tax for everyone will initially not go ahead, as the approximately €5 billion required to finance the measure cannot be covered by offsetting savings, according to the information provided.
Attention is now turning to Tuesday's coalition committee meeting. The CDU/CSU and SPD also agreed to soften planned cuts in the social sector. The proposed plastics tax will no longer be introduced following strong opposition from the business community. Meanwhile, the planned sugar tax has been postponed by six months and is now scheduled for 2028.
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