The German government has approved a €520.5 billion budget for 2026, with record investments in infrastructure and defense.

The draft budget for 2026, approved by the German government, foresees public investment of €126.7 billion, marking a shift away from fiscal conservatism. It includes total spending of €520.5bn and a new debt of €174bn, with special funds for infrastructure and defense. The budget will exclude defence and infrastructure spending from the budget deficit calculation, facilitating economic recovery and modernizing the country's strategic capabilities. Parliamentary debates will start in September and final approval is expected by the end of the year.