Germany's 2027 draft budget is finalized, Handelsblatt reports

By Maria Martinez ‌and Holger ​Hansen

BERLIN, ​June 26 (Reuters) - Germany's 2027 draft budget has been finalized, German newspaper Handelsblatt ‌reported on Friday, citing sources, saying that ⁠Finance Minister Lars Klingbeil has reached a final agreement ‌with cabinet colleagues.

The initial ‌budget shortfall of €21 billion ($23.94 billion) has been fully closed and the individual budget plans ​for each ministry are ready, Handelsblatt said.

To close the shortfall, Klingbeil will have to ⁠draw on part of a reserve of €9.7 billion, the report ​said, although he had previously said he hoped to leave it untouched when ​he presented the key ‌points for the 2027 budget.

A finance ministry spokesperson declined to comment on ⁠details and pointed out that the cabinet is due to approve the government draft as planned ⁠on July 6.

Tapping the reserve was necessary because the ​expected savings had not been fully achieved and there were unplanned expenses resulting from the U.S.-Israeli war with ‌Iran, Handelsblatt reported.

Thanks to some of these cuts, however, it was possible ‌to reduce the budget gap for 2028, ⁠which was just ‌under €30 billion.

($1 = 0.8772 ​euros)

(Reporting by Maria Martinez and Holger Hansen; editing by Matthias Williams and Paul ‌Simao)

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