BERLIN (Reuters) -The German cabinet, according to government sources, approved its 2025 budget and mid-term financial plan on Wednesday. Despite this progress, there remains a 17 billion euro gap between projected spending and revenue that needs addressing.
The German government hopes to plug the hole with additional revenues when the economy picks up. The euro zone’s largest economy skirted a recession at the start of the year but growth has been slower than expected. #GermanBudgetPlan
Germany’s budget for 2025 features record investments totaling 78 billion euros, alongside net borrowing of 43.8 billion euros. The total budget size amounts to 481 billion euros, adhering to the constitutionally-mandated debt brake.
“We are complying with the debt brake, which makes us an anchor of stability in Europe,” German Finance Minister Christian Lindner said on Wednesday.
The cabinet approved an economic package to boost the economy, targeting over half a percentage point growth in 2025. #GermanBudgetPlan
“With our growth initiative, we are providing important economic policy impetus to make Germany more attractive as a business location,” Lindner said. “New room for manoeuvre in the budget can only be created through more economic growth.”
The German cabinet passed its 2025 budget and mid-term financial plan until 2028, aligning with the funding for NATO’s minimum spending goals.
