(de-news.net) – Finance Minister Lars Klingbeil (SPD) has presented the 2026 federal budget. This marks the commencement of the German Bundestag’s second consecutive budget deliberation week. In his address to Parliament, Klingbeil underscored the imperative for far-reaching domestic reforms to enhance Germany’s strategic position within Europe. He asserted that “we must change domestically to be powerful in Europe,” advocating for prompt action and a decisive departure from the prevailing status quo. The minister stressed the urgency of undertaking difficult yet necessary decisions to secure Germany’s leadership within an autonomous European framework.

The proposed budget allocates approximately 520.5 billion euros in total expenditures, reflecting an increase from 502.5 billion euros in the preceding fiscal year. Investment allocations have declined to 56.1 billion euros, down from 62.7 billion euros in 2025. Net borrowing is projected at 89.9 billion euros, surpassing the previous year’s figure of 81.8 billion euros. Although the constitutional borrowing limit of 35.6 billion euros is nearly fully utilized, an additional 97.4 billion euros in new debt is justified through exceptional provisions, primarily for expenditures in the security and defense sectors, which are exempt from constitutional debt constraints.

Klingbeil clarified that funds from special assets would be directed toward the rehabilitation of long-neglected infrastructure, rather than to offset budgetary shortfalls. He simultaneously emphasized the necessity of fiscal restraint within the core budget. In light of the elevated debt levels, Klingbeil characterized the fiscal framework as a “paradigm change in financial policy,” noting its favorable reception in international circles.