Increased EU budget allocation of approximately €565.5 million earmarked for next year's pivotal spending areas
Germany has unveiled its budget allocation for 2026, with a significant focus on strengthening national security, supporting families with children, and investing in education.
A substantial portion of the budget, amounting to EUR 320 million, will be dedicated to measures related to strengthening national defense capabilities and internal security. This includes EUR 3 million allocated to the Interior Ministry to bolster security in border municipalities.
In a move to alleviate the financial burden on families, EUR 94.8 million is designated for direct support, with an additional EUR 94 million earmarked for measures to support families with children in 2026.
The value added tax (VAT) rate on essential food products such as bread, milk, eggs, and fresh poultry meat will be reduced for a year, starting from July 1, 2023, as a pilot project. This reduction is expected to provide relief to households.
Education is another key area of focus. EUR 45 million will be allocated for improving the quality of education and introducing the Program at School funding model from September 1, 2026. Furthermore, EUR 45 million is set aside for general education initiatives.
State budget support for farmers will also be maintained in 2026, with an additional EUR 59.3 million in funding for the sector. This allocation underscores the government's commitment to agriculture and food production.
Additional funding of EUR 139 million is foreseen for the medium term, specifically in 2026, for the government's priorities of support for families with children and education. This includes EUR 17 million for other priority actions, with EUR 10 million allocated for palliative care through policy changes and EUR 3.2 million for social rehabilitation services.
The Finance Ministry plans to allocate an additional EUR 565.5 million in the next year's state budget. Most of the additional funding for the identified government priorities will be provided through cuts in state budget spending.
The total additional funding secured as a result of the cuts to the national budget for 2026 is EUR 233 million. This budget allocation reflects the German government's commitment to addressing key issues and ensuring a balanced approach to financial management.
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