The German government will present a budget for 2026 that includes record investments of €126.7 billion, focusing on defense and infrastructure.

The draft budget for 2026, to be approved by the Berlin executive, foresees record investment of €126.7bn, part of a wider plan to revive the German economy, which has stagnated for the past two years. The boost will come from a special €500bn infrastructure fund and a relaxation of borrowing rules. Borrowing will rise significantly to €174.3bn in 2026, including expanded defense funds.