Germany to increase defense spending and allocate 11.6 billion euros to Ukraine

The German federal government has approved the draft state budget for 2027, which provides for 11.6 billion euros in military aid to Ukraine and a significant increase in the country’s defense spending.

Spiegel writes about this.

According to the draft, total federal budget expenditures in 2027 will amount to 555.4 billion euros, which is more than the 524.5 billion euros planned for 2026.

At the same time, Germany’s defense budget will increase to 109.7 billion euros. This is about a third more than this year.

Separately, the government has pledged 11.6 billion euros for military support for Ukraine in the war against Russia.

To finance the spending, Germany plans to raise new borrowings worth 118.7 billion euros. Including special funds for infrastructure development, achieving climate neutrality and financing the Bundeswehr, the total amount of new debt obligations could reach around 200 billion euros.

German Finance Minister Lars Klingbeil defended the decision to increase public debt, saying that Germany would not be able to guarantee its own security if it followed a zero-deficit budget policy.

After approval by the government, the draft budget will be considered by the Bundestag. Parliament is expected to adopt the document in November.