Federal budget | Federal budget plans: Record debt for the troops

The figures, which were leaked on Monday, are quite significant. By 2029 , the direct budget of the Federal Ministry of Defense (BMVg) alone is expected to increase to the 3.5 percent of economic output already effectively agreed upon by the North Atlantic Treaty Organization. With this, the Federal Republic aims to achieve the NATO target significantly sooner, much earlier than stipulated in the final declaration released before the alliance's summit in The Hague. There, this target is set for 2035.

Specifically, according to planning data from Federal Finance Minister Lars Klingbeil (SPD), almost 153 billion euros are to be spent on the Bundeswehr in 2029, well over double the amount spent this year. By comparison, the Federal Ministry of Defence's budget for the current year is 62.4 billion euros. Before its collapse, the traffic light coalition had planned 53.25 billion euros for this year . Added to this are the shares of the 100 billion euro special fund for the troops established in 2022.

On Tuesday, Klingbeil presented the budget plans for all departments for this year and the following four years. He defended the planned record debt. "I also want to be Minister of Investment in this country," he declared. "For me, a balanced budget is not a value in itself if it causes bridges to rot, schools to deteriorate, and the Bundeswehr to be neglected," he said. In doing so, he emphasized the borrowing that a majority of the country considers sensible and necessary.

On Tuesday, the Federal Cabinet passed resolutions on the 2025 budget and further financial planning, which, among other things, provide for an unprecedented expansion of the defense budget and new borrowing. For this year alone, the government estimates new federal borrowing of €81.8 billion – up from €33.3 billion last year. In 2026, the deficit is expected to increase to €89.3 billion. In 2029, new borrowing is expected to reach €126.1 billion.

According to Klingbeil, the federal government's planned "record investments" for this year amount to 115.7 billion euros. 74.5 billion euros were earmarked for investments in 2024. "We will invest massively in the Bundeswehr," announced Defense Minister Boris Pistorius (SPD). This is "today's message from Berlin," and it is with this commitment that he travels to the NATO summit.

Pistorius said that NATO partners' expectations of Germany are "quite rightly" high. Investments in air defense are planned, and the budget also provides for 10,000 new military and 1,000 additional civilian positions for the armed forces this year alone.

The Left Party particularly criticized the enormous increase in military spending. Party leader Ines Schwerdtner said: "This budget is a rearmament budget – and a budget of social coldness." Cuts to the citizen's income, subsidy programs, "and all of this is being sold as 'consolidation,'" the Bundestag member complained. "But what appears to be sober budgetary logic is nothing other than a political clear-cut at the expense of those who already have the least," Schwerdtner said. At the same time, "companies are being relieved of their burdens with billions in tax breaks – without any binding compensation or proven impact." As long as the debt brake is not fundamentally reformed, "every budget will remain a budget of cuts."

"What appears to be sober budgetary logic is nothing other than a clear-cut at the expense of those who already have the least."

Ines Schwerdtner, Left Party co-chair

The Diakonie criticized insufficient "investment in social infrastructure and social security." Internal and external security also includes "poverty reduction, support for children and young people, care for the elderly and sick, participation of people with disabilities, integration of refugees, and socially just climate protection," according to the welfare association. The VdK social association criticized "inadequate funding for health and care."

The Greens also sharply criticized the cabinet resolution for the current year, but did not mention defense spending. Sebastian Schäfer, budget policy spokesperson for the Bundestag parliamentary group, stated: "Instead of investing decisively in climate protection, social justice, and the modernization of our country, the focus is on distributing election gifts and plugging budget holes. The funds are not being used to make our country future-proof, to expand the rail network, to modernize swimming pools, or to ensure that buses run punctually and regularly again." At the same time, social welfare cuts are being pursued.

The German Trade Union Confederation (DGB) largely assesses the budget plans positively. DGB President Yasmin Fahimi said: "The economy now needs a bold signal for more investment and good jobs. The cabinet's decisions are an important step in this direction." A rapid deployment of funds from the special infrastructure fund is necessary. "An excellent and affordable infrastructure as well as planning security are the prerequisites for a way out of the crisis," emphasized the former SPD general secretary. She appealed to the business community to use the tax incentives planned by the government for investments instead of "continuing to exert pressure on the workforce." Fahimi also declined to comment on the increase in defense spending.

The Pro-Rail Alliance called for the investment backlog in the rail network to be resolved. The length of the "chronically congested routes" has almost doubled from 749 to 1,321 kilometers within just a few years, explained Dirk Flege, managing director of the transport alliance. Furthermore, simply renovating the existing tracks is not enough. Additional tracks are needed, Flege added.

Meanwhile, Klingbeil promised that as head of the Finance Ministry, he would not only ensure that the money was spent efficiently, but also "take a tougher stance against those who exploit the state and enrich themselves at the expense of the public." He is committed to "consistently combating tax fraud, illegal employment, and other financial crimes." He announced that he would present legislative initiatives to this end before the summer recess.