Germany approves the record 2026 budget with the highest level of military spending since the Cold War
The German parliament approved a budget of 524 billion euros ($606.86 billion) for 2026, after months of political negotiations. The federal plan includes nearly 180 billion euros in borrowed funds, an increase of 21.5 billion euros from last year.
Military spending will reach 108 billion euros, the highest level since the end of the Cold War, thanks to a constitutional amendment passed in 2025. Lawmakers emphasized that national security and defense modernization are top priorities.
Ukraine will receive 11.5 billion euros in record support to cover artillery, drones, military vehicles, and other equipment to bolster its defenses against Russia. This support represents the largest German military contribution to Ukraine to date.
The budget also reflects Germany's broader economic and geopolitical strategies, balancing domestic investment with international commitments. Borrowed funds will be used to support infrastructure, social programs, and economic stability amid global uncertainty.
While the plan has been approved, analysts point to potential challenges ahead, including managing high defense costs and ensuring that borrowed funds are used efficiently. Observers expect close monitoring of spending and further discussions in the coming months.