Berlin’s €90 Billion Budget Sparks Debate Amid Economic Crisis

A bold but risky move: Berlin bets on massive spending to revive its economy. Will record debt and higher taxes save the city—or deepen its troubles?

, and Administrator

2025 December 18 . 7:04 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 Sparks Debate Amid Economic Crisis

Berlin's governing coalition has approved a record €90 billion budget for 2026 and 2027. The CDU-SPD alliance plans to spend €44.4 billion in 2026 and €45.3 billion the following year. This comes as Germany's economy struggles with rising bankruptcies, unemployment, and a decline in industrial output.

The budget will see the city take on billions in new loans. Net borrowing in the core budget is set to reach €3.8 billion in 2026 and €3.7 billion in 2027. Total deficits are projected at €5.3 billion for 2026 and €5.0 billion for 2027.

The budget reflects Berlin's response to economic pressures while increasing investment in key services. With higher spending and borrowing, the city's debt burden per resident will continue to grow. The plan also allocates extra funds to support struggling public sector companies.