Overview
- The cabinet approved the 2027 draft budget on Monday, setting total spending at €555.4 billion and planned borrowing at €203.6 billion for 2027.
- Core defence spending is raised to about €109 billion for 2027 from roughly €82 billion in 2026 and total defence‑related outlays are reported at about €130–145 billion for 2027.
- New borrowing for 2027 is split roughly into €118.7 billion in the core budget, €54.9 billion through the special infrastructure fund and €30 billion from a dedicated defence borrowing line.
- The draft earmarks €11.6 billion for Ukraine in 2027 and €8.5 billion annually from 2028 to 2030, and some outlets report projections that defence and security outlays could climb above €200 billion by 2029.
- Officials say the plan relies on a 2025 change to the constitutional debt brake and a reported €500 billion special fund for 2025–2035, but rising interest costs and planned tax and benefit offsets mean parliament and markets will shape whether the buildup is sustainable.