(Adnkronos) – Germany’s fiscal policy “is set to become expansive, especially in 2026,” with a general government deficit projected to increase to 3.7% of GDP in 2026 and 4.1% in 2027. This is what emerges from the spring economic forecasts presented today by the European Commission, which nevertheless show a slight decrease compared to those of last autumn, which predicted a deficit of 4% in 2026.
The growth in German spending will be driven by further expenditures related to German RRP investments and an increase in defense spending, the EU executive emphasizes, according to which the growth in social spending “will slowly moderate, remaining at high levels.” Due to fiscal expansion, the European Commission expects the German debt-to-GDP ratio to rise from 63.5% in 2025 to 65.8% in 2026 and 68% in 2027.
