Minister Lars Klingbeil has defended the planned increase in new borrowing for the federal budget next year. “The fact that we are taking on debt is because we are rearming our Bundeswehr, because we are modernizing,” the SPD leader said in the ARD “Summer Interview.” With a view to Russian President Vladimir Putin and threats from Russia, he stressed: “You cannot defend yourself against Putin with the black zero.”
The cabinet plans to pass the government draft of the 2027 budget on Monday. According to the cabinet draft, net borrowing of 118.7 billion euros is planned for 2027 – compared to 98 billion in 2026. Added to this are new debts from the special funds for infrastructure and climate neutrality as well as for the Bundeswehr. Overall, new borrowing in 2027 is thus expected to be around 200 billion euros. Expenditure on defense and security only falls under the debt brake up to a limit of one percent of gross domestic product.
Klingbeil said with regard to the debt rule that he was presenting a constitutional budget. Looking at the previous financial planning, he said they had succeeded in closing a gap of 34 billion euros. Klingbeil defended the planned withdrawal of 6.8 billion euros from the reserve. “Tapping into reserves is completely normal.” The Iran war had dampened growth hopes. “That hits hard. We see that in the numbers. And we have to deal with it.”
The finance minister announced a stricter austerity course in view of billion-euro gaps from 2028 onwards. For the 2027 budget, he had given the ministries savings targets of one percent. He will demand from every minister that they add another 2 percent on top of the 1 percent savings, Klingbeil said. “We have to consolidate, there is no way around it.”
Source: Stadt München
