Berlin’s €90 Billion Budget Plan Sparks Debate Over Rising Debt

A bold financial gamble or a risky debt spiral? Berlin’s massive spending plan promises more per resident—but at what long-term cost?

, and Administrator

2025 December 18 . 7:03 PM

1 min read

In this picture we can see a bus parked on the road and behind the road there is a wall, electric... — In this picture we can see a bus parked on the road and behind the road there is a wall, electric poles with cables. Behind the poles there are trees, buildings and the sky.

Berlin’s €90 Billion Budget Plan Sparks Debate Over Rising Debt

Berlin is set to approve a record €90 billion budget for 2026 and 2027. The plan, proposed by Germany’s coalition government, marks the city’s largest-ever financial package. However, much of the funding will rely on new borrowing as economic pressures grow.

The budget was negotiated by Finance Minister Christian Lindner of the FDP and Chancellor Olaf Scholz’s SPD-led cabinet. Under the plan, Berlin will spend €44.4 billion in 2026 and €45.3 billion in 2027. This translates to roughly €11,400 per resident in 2026 and €11,600 the following year.

The €90 billion budget will push Berlin’s debt to new highs, with borrowing covering a significant share of costs. Spending per resident will rise, but so will the city’s financial burden. The plan now awaits final approval amid ongoing economic uncertainty.