{
  "id": 19808718,
  "title": "Germany set for near-record new borrowing in 2027 after difficult budget deal",
  "url": "https://urgent.news/2026/11/13/germany-set-for-near-record-new-borrowing-in-2027-after-difficult",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-13T13:01:24.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/german-budget-committee-agrees-on-2027-budget-5024172"
  },
  "original_language": "en",
  "account": "Germany is poised to increase its borrowing by over €210 billion next year, marking the second-largest amount since World War Two. This projection, following parliamentary endorsement of a budget plan, aims to rejuvenate Chancellor Friedrich Merz's government, despite its unpopularity. The budget, totaling €561 billion, has cleared the parliamentary budget committee and is now ready for passage.\n\nThe budget plan, which includes spending, was agreed upon after days of negotiations between the coalition partners, the Christian Democrats (CDU) and the Social Democrats (SPD). These discussions led to the removal or postponement of measures such as taxes on plastics and sweetened beverages, as well as cuts to social security.\n\nChancellor Merz's government has emphasized a focus on strengthening Germany's infrastructure and military, following years of underinvestment. However, the coalition has faced challenges in balancing these priorities with competing economic interests. Merz has promised reforms to pension, tax, and welfare systems but has struggled to maintain cohesion within the coalition.\n\nEconomist Holger Schmieding noted that the budget, with its lack of significant welfare spending cuts or tax reductions, highlights the difficulty in reaching agreement between the coalition partners. The total new borrowing is just under the record €215.4 billion set in 2021 during the COVID-19 pandemic, with a substantial portion allocated to core budget items like infrastructure and defence.\n\nChristian Haase, a CDU member of the parliamentary finance committee, described the budget as one of consolidation, investment, and cohesion, while acknowledging the need for restraint in defence and retirement benefits to control deficits. SPD member Thorsten Rudolph stressed the importance of social cohesion and support for working families, despite budgetary pressures.\n\nOpposition parties have accused the government of employing underhanded tactics to conceal borrowing and spending on essential income support. The government has since rolled back proposed taxes on plastic packaging and delayed taxes on sugared drinks, as well as a cut to an electricity tax, alongside a postponement of a planned cut to benefits for low-income families' children.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}