Germany’s Finance Minister Lars Klingbeil plans to raise spending and incur significant new debt in 2027.

According to a budget draft obtained by ARD, Finance Minister Lars Klingbeil is set to propose expenditures of 555 billion euros for 2027, marking a nearly six percent increase from this year. The draft outlines over 203 billion euros in new debt, the second-highest in Germany’s history.

The net borrowing is projected at 118.7 billion euros, influenced by additional debts for military and infrastructure funds. To address financial gaps, Klingbeil plans to tap into reserves accumulated until 2019 and increase taxes on alcohol and tobacco, alongside introducing a plastic tax and taxing cryptocurrency transactions.