German draft budget foresees more than €203 billion in borrowing, document shows

Germany plans to lift 2027 borrowing to more than €203 billion ($232 billion), according to the budget draft seen by Reuters on Friday, a sharper rise than previously signalled, as Berlin ramps up investment and defence to shield its sluggish economy from war-related energy shocks and years of underinvestment.

Borrowing is up from the €196.5 billion signalled in April and far above the €50.5 billion in 2024 under the previous government, before Germany threw off decades of fiscal conservatism...