Overview
- The federal core budget totals about €524–525 billion, with more than €180 billion in new borrowing once special funds are included, the second‑highest level on record.
- Planned outlays include roughly €140 billion for pensions and about €83 billion for the Defence Ministry, alongside around €120 billion in investments financed largely through special funds.
- Finance Minister Lars Klingbeil frames the package as future‑oriented investment, while Union lawmakers back high near‑term investment but caution that debt‑financed spending cannot continue indefinitely.
- Opposition parties and analysts allege repurposing of earmarked money, with the Greens citing “zweckentfremdet” use of special funds, the IW estimating about half of the infrastructure fund covers already planned measures, and the AfD calling the draft unconstitutional.
- In parallel, North Rhine‑Westphalia opened a three‑day debate on a record €112.3 billion state budget that boosts social, school and cultural funding, cuts higher‑education base funding and personnel by €1.4 billion, and trims planned market borrowing to about €4.3 billion ahead of a mid‑December final vote.