Germany's 2027 draft budget signals a major policy shift, prioritizing military expansion over other sectors. Finance Minister Lars Klingbeil announced that spending is expected to reach €555.4 billion, including €109.7 billion for defense to counter Russian aggression. This surge in spending, combined with massive special funds for infrastructure and climate goals, is driving national debt toward record levels. Total projected debt for 2027 could reach approximately €203 billion when including shadow budgets. While the government seeks new revenue through taxes on sugar, plastic, and the wealthy, significant budget cuts are inevitable for most ministries and social security subsidies. Despite economic stagnation and rising interest costs, which could consume one-fifth of tax revenue by 2030, the government maintains that Germany's debt remains manageable compared to Eurozone averages.