The federal government aims for a net borrowing of €196.5 billion, with €105.8 billion allocated to defense, amidst rising geopolitical tensions. Klingbeil emphasized the need for budgetary reforms across sectors to address a projected €29 billion financing gap in 2028. Opposition parties criticized the defense spending, arguing it detracts from essential social services. The budget will undergo further refinement before the cabinet’s decision in July.