German lawmakers face key talks on the 2027 federal budget

Germany’s Budget Committee is due to hold a decisive overnight session on Thursday as lawmakers work on the country’s 2027 federal budget.

The proposed budget totals €555 billion, the largest on record, excluding borrowing from special funds.

More than €200 billion is planned for work and social affairs, including €132 billion for the state pension system.

Defence spending is set at nearly €110 billion, about twice the level before Russia’s full-scale invasion of Ukraine, while nearly €44 billion is earmarked for interest payments.

Committee members will review more than 1,000 pages of proposed changes and are expected to hold around 3,000 votes, while some tax plans remain unresolved.

The Bundestag must still approve the budget after the committee completes its work.