Overview

• Financial aid will more than double from about €25 billion in 2023 to nearly €60 billion in 2026, while federal tax concessions decline to €18.4 billion.
• Support to the commercial sector rises to €45.4 billion in 2026, accounting for 58.4% of the total.
• Roughly 90% of the aid is tied to environmental and climate objectives, including decarbonising transport and buildings, hydrogen projects, microelectronics and social housing.
• Officials attribute the recorded increase chiefly to the federal takeover of the EEG levy, which added €18.5 billion in 2024 as an on‑budget item.
• A full review of subsidies is slated from 2027 due to fiscal pressures, with the report noting actual outlays often come in below plan and researchers such as IfW Kiel typically calculate higher totals.