Germany to ramp up borrowing amid large-scale military spending push

The German government is working on a draft budget for 2027 which includes total borrowing of €196.5bn as it aims to bolster infrastructure and defence, sources told Reuters. This compares with €50.5bn in 2024 under the previous government, before Europe's biggest economy threw off decades of fiscal conservatism last year in a bid to revive growth, modernise crumbling infrastructure and scale up military spending.