Germany's coalition government has finalised the 2026 federal budget after a marathon meeting on Thursday night. The more than €500 billion package promises targeted relief for individuals and selected industries but also record new borrowing. A draft of Germany's federal budget for 2026 was agreed on in the early hours of Thursday by the government's budget committee. The total planned expenditure stands at €524.5 billion, which is €4 billion more than initially anticipated.
The 2026 budget is currently being debated in the lower house of parliament, the Bundestag. The draft was presented by Finance Minister and Vice Chancellor Lars Klingbeil and will be debated for around two months before being voted on at the end of November. The debates will not be easy. Many ministries will have to work with significantly smaller budgets because tax revenues are far from sufficient to cover government spending.