Germany Agrees 2027 Budget with High Borrowing
Germany's budget committee has finalised the 2027 spending package featuring over €210 billion in new borrowing. The agreement follows weeks of intense negotiations and dropped tax plans.
Germany's budget committee finalized the 2027 fiscal package during Friday's early morning hours, authorizing over €210 billion ($222 billion) in new borrowing. The total represents the second-highest borrowing volume since World War Two, trailing only the €215.4 billion peak recorded in 2021. Chancellor Friedrich Merz faces mounting political pressure as opposition lawmakers criticize the financing strategy ahead of the parliamentary vote.
