Overview
- Lawmakers passed the budget 322–252 with no abstentions, and ministers were urged to deploy investment funds quickly as the bill moves to the Bundesrat on 19 December.
- Core federal outlays total €524.5 billion with nearly €98 billion in net new debt, and total new borrowing rises to about €181.5 billion through credit‑financed special funds enabled by debt‑brake exceptions.
- The largest allocation is €197.34 billion for labour and social affairs, including roughly €128 billion for pensions, while defence reaches about €108 billion including the Bundeswehr special fund and transport adds nearly €14 billion plus over €21 billion from a dedicated infrastructure pot.
- Measures include a higher commuter tax allowance, an EV purchase bonus for lower‑ and middle‑income households, an EH55 home‑efficiency program starting 16 December, and €11.5 billion in military support for Ukraine.
- AfD, the Greens and The Left denounced the plan over debt levels or spending priorities, and Finance Minister Lars Klingbeil warns of €22–30 billion financing gaps in 2027–28 as a pension commission prepares reform proposals by mid‑2026.