Germany Borrowed €28.6 Billion for Defense — But €11 Billion Went Elsewhere?

The German government explains that it is borrowing money to invest in defense, but at the same time is following France’s lead and using the loans merely to plug a budget hole, according to the Ifo Institute for Economic Research.

The country took out additional loans totaling 28.6 billion euros in 2025, but defense spending amounted to 17.6 billion euros, according to Ifo’s calculations. The remainder—11 billion euros—went toward addressing budget shortfalls in other categories.

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