German Finance Minister Lars Klingbeil defended increased borrowing during the Bundestag debate on the 2027 draft budget on September 8. Reuters reported that he argued Germany could not adequately defend itself without taking on new debt, linking the expenditure to security threats and future investment needs.
The government planned total borrowing of €838.2 billion between 2027 and 2030. Investment was projected to rise to €117.5 billion in 2027, compared with €78.9 billion in 2025, supported by a €500 billion infrastructure fund and relaxed borrowing rules for defence. The cabinet had approved its first budget draft in July.
Klingbeil said the investment would improve Germany’s future capacity to act. Reuters placed the debate against pressure from Washington for NATO allies to contribute more to defence, warnings about cyber and hybrid threats, and an economy affected by energy shocks and underinvestment. The figures represented the government’s plans under parliamentary discussion, rather than a report that all borrowing had already occurred. The speech defended the fiscal approach while legislative scrutiny of the draft continued.