Germany is massively arming itself. The largest military budget since the Cold War

After months of political disputes, the Bundestag adopted the federal budget for 2026 on Friday. It envisages expenditure of EUR 525 billion. Ukraine can count on EUR 11.5 billion in support.

The budget amount for 2026 is EUR 21.5 billion higher than that for 2025which was adopted only in September after months of the so-called provisional budget.

Record funds will be spent on defense. According to the voted project, it is EUR 108 billion, the highest amount since the end of the Cold War. By 2029, Germany plans to increase defense spending to 3.5%. GDP.

The increase in defense spending is possible thanks to the fact that the Bundestag passed a law in March reforming the “debt brake” included in the Basic Law (German constitution), prohibiting increasing the budget deficit above 0.35 percent. GDP.

Germany's budget plans for 2026 include over EUR 180 billion in loans. This is the highest number in German history, excluding the period of the coronavirus pandemic, when special stimulation of the economy was necessary.

Ukraine, which is repelling Russian aggression, can count on EUR 11.5 billion, including: for artillery, drones and other military equipment. Initially, the draft budget included an amount of EUR 8.5 billion, but in the autumn the government of Chancellor Friedrich Merz decided to increase it by EUR 3 billion.

The budget was passed thanks to the support of the coalition partners CDU/CSU and SPD, but was criticized by the parliamentary opposition, i.e. the right-wing populist Alternative for Germany (AfD), the Greens and the Left.

During the debate, AfD MPs warned against excessive debt and the growing public debt service. However, in the opinion of many Green and Left MPs, the budget is incorrectly balanced. – This budget ignores the problems of ordinary people, i.e. affordable housing, good schools, efficient nurseries, health care and strong municipalities – said the leader of the Left, Ines Schwerdtner.

Spending related to the labor market and social policy accounts for over a third of the budget, mainly because the government has to allocate more and more resources to pension insurance. According to “Sueddeutsche Zeitung” calculations, the Ministry of Labor will receive as much as 38% in 2026. the entire budget, three-quarters of which will be allocated to the pension system. The Ministry of Transport can also count on a significant increase in funds.

Merz, who took office as chancellor at the beginning of May, already during the election campaign promised to increase spending on infrastructure and military development.. The Christian Democrat leader intended this to be a development impulse for the German economy, which had been mired in stagnation in the previous two years.

At the same time – as the Politico website reported on Friday – the Bundestag budget committee plans to approve over EUR 2.6 billion for new military programs. There are 11 items in question, including: drones, long-range missiles and modernization of the radar system.

From Berlin Mateusz Obremski (PAP)

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