Lead

Germany's federal cabinet has approved the draft budget for 2027, a plan that significantly increases spending and borrowing, with a major boost for the country's armed forces. The approval came on Monday, July 6, and the budget will now proceed to parliament for final approval.

Coverage Comparison

Deutsche Welle reported that the cabinet, led by Chancellor Friedrich Merz, approved the defense-heavy budget proposal. The draft includes a one-third increase in defense spending, rising from €82.2 billion in 2026 to nearly €110 billion in 2027. The budget also allows for up to €203.6 billion in borrowing, a move that comes after a period of austerity under former Chancellor Angela Merkel.

In a separate story, Deutsche Welle reported that Canada has selected Germany's TKMS for a submarine deal, citing The Globe & Mail. The deal, worth tens of millions of euros, reportedly beat out South Korea's Hanwha, though an official announcement is not expected until later.

Key Claims

  • The federal cabinet is set to approve the draft budget for 2027, with spending planned at €555.4 billion, a significant increase from the current year's €524.5 billion.
  • New borrowing is expected to total more than €200 billion, a larger increase than initially planned.
  • Defense spending is set to rise by about a third, with around €109.7 billion allocated for the Bundeswehr.
  • Total investment will be €117.5 billion, almost €40 billion more than originally planned, following the approval of a €500 billion infrastructure fund and a rule change allowing defense spending to be excluded from debt limits.
  • Three men are standing trial over the discovery of one of Germany's biggest-ever illegal weapons caches.
  • Canada has reportedly chosen German shipbuilder TKMS for a submarine deal worth tens of millions of euros, beating out South Korea's Hanwha, according to The Globe & Mail, citing two unnamed sources.
  • The Royal Canadian Navy has said it needs at least 12 submarines to remain modern and competitive amid threats from Russia and China.