Germany approves 2027 budget plan with billions for Ukraine
Photo: German Finance Minister Lars Klingbeil (wikipedia.org)
The German government on Wednesday, April 29, approved the key parameters of its 2027 budget, which also includes support for Ukraine, Reuters reports.
Total borrowing is expected to reach €196.5 billion, driven by increased spending on aging infrastructure and defense.
In 2024, borrowing stood at €50.5 billion under the previous government, before Germany abandoned its policy of fiscal conservatism last year in an effort to revive the economy. This year’s budget includes a €180 billion increase in public debt.
Focus on defense
The budget provides for a significant increase in defense spending, which is set to rise to €105.8 billion in 2027 from €82.7 billion in 2026 under the core budget.
Including the special defense fund and funds allocated for Ukraine, total defense spending in 2027 is expected to reach €144.9 billion.
Support for Ukraine
Under the main provisions of the plan, Germany will continue to provide €11.6 billion in support to Ukraine in 2027, and €8.5 billion annually from 2028 to 2030.
Responding to questions about a reduction in support for Ukraine starting in 2028, Finance Minister Lars Klingbeil pointed to the approved €90 billion EU loan for Ukraine.
He added that the figures included in the financial program could change in the future depending on Ukraine’s needs.
Germany continues to strengthen Ukraine’s defense capabilities. In particular, Defense Minister Boris Pistorius announced the launch of a large-scale multi-year support package for Ukraine’s air defense.
In addition, Berlin and Kyiv agreed to enhance the Ukrainian Armed Forces’ long-range capabilities. To this end, the two countries are establishing a joint defense enterprise that will enable Ukraine to carry out more effective long-range strikes.
