GERMAN COMMITTEE APPROVES 2026 BUDGET WITH HIGHER BORROWING

Germany's federal budget for next year has cleared a key hurdle and is now ready for a final vote in parliament.

After long negotiations, the Bundestag's budget committee - whose approval is effectively the last major step before the plenary vote - early Friday signed off on a €524.5-billion ($611-billion) spending plan, €4 billion more than the government had originally proposed.

The budget relies on substantial new borrowing. The committee authorized nearly €98 billion in fresh debt for the core budget, around €8 billion more than in the government's initial draft.

Additional loans from a previously agreed special fund for defence and infrastructure are expected to push total new debt to more than €180 billion.

The Bundestag, Germany's lower house of parliament, is due to hold a final vote on the budget during the parliamentary week of November 25–28.

The plan sets spending levels for each ministry in 2026 and outlines which projects will receive funding.

2025-11-14T07:54:18Z