Tue, 07 Jul 2026 Kyiv 12:17Berlin 11:17London 10:17 UKR / DE / EN

Cabinet Approves Record 2027 Budget with Spending Cuts

The German cabinet is set to approve the 2027 budget draft on Monday. Despite record spending of 670 billion euros, most ministries face cuts.

Cabinet Approves Record 2027 Budget with Spending Cuts
Photo: zdfheute.de

The German cabinet is set to approve the 2027 budget draft on Monday. Despite record spending of 670 billion euros, most ministries face cuts.

The core budget is set to total 555 billion euros, with an additional 55 billion euros from the special fund for infrastructure and climate neutrality, 30 billion euros for the Bundeswehr, and around 30 billion euros from the Climate and Transformation Fund. Finance Minister Lars Klingbeil had previously called on ministries to exercise restraint.

Nevertheless, two ministries can expect significant increases: Defense Minister Boris Pistorius receives a sharply higher budget, and Labor Minister Bärbel Bas is to see her budget rise to over 200 billion euros. The draft is not yet law – negotiations in the Bundestag begin in early September after the summer break. If all goes according to plan, the Bundesrat is expected to pass the budget in December.

Source: www.zdfheute.de