Germany is significantly increasing defense spending and aid to Ukraine in its 2027 budget
The German government has approved the key parameters of the 2027 national budget, with total expenditures of €543.3 billion. Of this amount, €11.6 billion is earmarked for support to Ukraine.
According to Reuters, the document provides for record funding for the defense sector and long-term financial assistance to Ukraine. Chancellor Friedrich Merz emphasized that Iran’s aggressive actions and the ongoing war in Eastern Europe are forcing Berlin to accelerate investments in defense capabilities.
€11.6 billion is allocated to support Ukraine in 2027, and €8.5 billion annually for the period 2028–2030. Finance Minister Lars Klingbeil explained that a certain reduction in direct payments starting in 2028 will be offset by the approved €90 billion EU loan, which Hungary had previously blocked. At the same time, the financial framework remains flexible and can be revised in line with Kyiv’s needs in the fight against Russia.
Germany’s total defense spending in 2027 will reach €144.9 billion, accounting for 3.1% of GDP, exceeding the NATO target. Additionally, the draft budget allocates €118.5 billion for investments focused on modernizing transportation, digitalization, and healthcare through a special infrastructure fund. Parliamentary readings on the budget will begin in September, and final approval of the document is expected by the end of 2026.
Germany is strengthening its defense cooperation with Ukraine and adopting its experience in developing modern military technologies that are tested directly in combat conditions. This was stated by German Defense Minister Boris Pistorius.
Germany recently transferred three cogeneration units to Ukraine for the Chernihiv region, which are intended to ensure a stable supply of heat and electricity. This equipment will be able to meet the needs of tens of thousands of residents and the city’s critical infrastructure.
Germany is expanding its military exchange program and actively involving Ukrainian instructors with real combat experience in the training of Bundeswehr units to adapt its army to the conditions of modern warfare. Ukrainian military personnel are already working at key training schools and passing on practical skills gained on the front lines.
