German 2027 Net Borrowing Near €200bn

German government’s 2027 draft budget projects net funding needs of €196.5 bn, about 4.3% of GDP, up €15 bn from 2026.
Half the deficit rise stems from faster defense spending aiming for 3.5% of GDP by 2029; the other half reflects weaker growth.
A €20 bn budget gap remains for 2027, to be addressed via ministry cuts, a plastic tax, and healthcare‑pension reforms.
Markets view the draft as marginally positive for the euro, but analysts warn growth risks are underpriced and favor long 10‑year Bunds.