Overview

• In official plans, financing gaps widen to €34 billion in 2027, €64 billion in 2028 and €74 billion in 2029, totaling €172 billion despite expanded borrowing space.
• Most of the special fund is tightly allocated, with about €100 billion for Länder, €100 billion for the climate/transformations fund and roughly €300 billion restricted to maintenance of roads, rail and bridges, while the core transport budget is set to shrink; Finance Minister Lars Klingbeil rejected calls for more transport money, citing €166 billion over the term.
• Analyses from IW and Ifo say shifting projects from the core budget into the special fund obscures trade‑offs and props up other spending, and the Bundesrechnungshof warns the federal government is living beyond its means with rising long‑term interest costs.
• During the Bundestag general debate on the 2026 budget, the government defended its plan and promised competitiveness measures, the opposition pressed for concrete savings, and the timetable foresees committee changes in mid‑November and a final vote on 28 November.
• EU finance ministers agreed initial governance steps for a potential digital euro in Copenhagen, including a Council discussion before any ECB issuance decision and ministerial approval of ECB‑proposed holding limits.