German Cabinet Approves New Fiscal Budget Draft, Significantly Increases Military Spending

The German federal cabinet approved the draft federal budget for 2027 on the 6th local time. According to the budget draft, the planned federal expenditure for Germany in 2027 is €555.4 billion, up from €524.5 billion in 2026; notably, the federal defense budget for Germany will increase to approximately €109.7 billion in 2027, an increase of about one-third compared to 2026.

This budget draft has sparked criticism from various quarters. The German Left Party believes that the government is allocating more funds to defense spending while insufficiently investing in alleviating the burden on the public and disaster relief; the German industry argues that the growth of budget expenditures and debt is too rapid, and the fiscal planning lacks robustness; some environmental organizations criticize the government for adjusting the funding arrangements for climate and transformation funds, arguing that this move will weaken support for climate protection.