* Germany plans record investment in 2026 budget
* Defence spending to rise to 3.5% of GDP by 2029
* Investment offensive expected to revive its lethargic economy
>The German government will on Wednesday back a 2026 draft budget which includes record investment of 126.7 billion euros and borrowing of 174.3 billion euros as part of its fiscal bazooka for infrastructure and defence, finance ministry sources said.
>[Germany](https://www.reuters.com/world/germany/) is throwing off decades of fiscal conservatism in the hope of reviving economic growth, modernising its crumbling infrastructure and scaling up military spending, as Europe’s biggest economy has gone from economic powerhouse to the euro zone’s laggard.
>It is the only G7 economy that failed to grow for the last two years and the government forecast in the spring that it would stagnate again this year. The sources said that with the budget plans, the economic environment should improve noticeably over 2025 and 2026 compared with those forecasts.
>The 2026 draft budget comes together with a medium-term financial framework until 2029, with the whole package expected to be approved by the cabinet.
This will mostly have no effect except for raising the dept level and borrowing costs. The problem with German infrastructure is not that there is not enough money spent. The issue is, that it is way to expensive to maintain and build infrastructure. Check out this report by ifo (in german):
tldr: All the past “investment offensives” in rail infrastructure only affected the price of the infrastructure built, it had no effect on the amount of infrastructure built.
When building infrastructure, money is not the only limiting factor. There is also absurd bureaucracy, limited labor, limited construction equipment and limited amounts of strain that networks can take due to construction sites.
If Germany wants to get out of this, they have to prioritize stuff. They simply cannot afford their weird environmental protection norms, absurdly expensive projects that only have symbolic utility and investments based purely on ideology.
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* Germany plans record investment in 2026 budget
* Defence spending to rise to 3.5% of GDP by 2029
* Investment offensive expected to revive its lethargic economy
>The German government will on Wednesday back a 2026 draft budget which includes record investment of 126.7 billion euros and borrowing of 174.3 billion euros as part of its fiscal bazooka for infrastructure and defence, finance ministry sources said.
>[Germany](https://www.reuters.com/world/germany/) is throwing off decades of fiscal conservatism in the hope of reviving economic growth, modernising its crumbling infrastructure and scaling up military spending, as Europe’s biggest economy has gone from economic powerhouse to the euro zone’s laggard.
>It is the only G7 economy that failed to grow for the last two years and the government forecast in the spring that it would stagnate again this year. The sources said that with the budget plans, the economic environment should improve noticeably over 2025 and 2026 compared with those forecasts.
>The 2026 draft budget comes together with a medium-term financial framework until 2029, with the whole package expected to be approved by the cabinet.
!ping Germany
https://preview.redd.it/11e6ke5k1nff1.png?width=284&format=png&auto=webp&s=499f83348c73ba835cfdef7a27ecf57f3804767f
This will mostly have no effect except for raising the dept level and borrowing costs. The problem with German infrastructure is not that there is not enough money spent. The issue is, that it is way to expensive to maintain and build infrastructure. Check out this report by ifo (in german):
[https://www.ifo.de/sites/default/files/2025-05/sd-2025-05-berschin-deutsche-bahn-bauvolumen-preisentwicklung.pdf](https://www.ifo.de/sites/default/files/2025-05/sd-2025-05-berschin-deutsche-bahn-bauvolumen-preisentwicklung.pdf)
tldr: All the past “investment offensives” in rail infrastructure only affected the price of the infrastructure built, it had no effect on the amount of infrastructure built.
When building infrastructure, money is not the only limiting factor. There is also absurd bureaucracy, limited labor, limited construction equipment and limited amounts of strain that networks can take due to construction sites.
If Germany wants to get out of this, they have to prioritize stuff. They simply cannot afford their weird environmental protection norms, absurdly expensive projects that only have symbolic utility and investments based purely on ideology.