The German cabinet has at last approved its 2025 budget after months of wrangling, despite a €17 billion shortfall between projected spending and revenue. Finance minister Christian Lindner stated that innovative measures and stronger growth from a new economic package should generate an additional €6 billion next year. The budget includes record investments of €78 billion, net borrowing of €43.8 billion, and a total size of €481 billion. The country aims to boost its economy by over 0.5% in 2025. Lindner defended the budget's legality and fiscal prudence despite analysts’ concerns. Military aid to Ukraine will be reduced next year, as Ukraine is expected to secure $50 billion in loans from the G7. Germany was the worst performing major economy last year, with gross domestic product contracting by 0.3%. It pulled out of recession early this year, but growth has been slower than expected. Reaching agreement on the budget has been a major test for a coalition often accused of being hobbled by internal disagreements.
Germany: coalition finally passes 2025 budget
Written by David Fletcher 18 Jul 2024![Germany: coalition finally passes 2025 budget](/media/k2/items/cache/2d9e1161794b51d74bcc1f126d614ed2_L.jpg)
Additional Info
- Pray: that the coalition government will be able to agree to make important decisions. (Proverbs 3:5,6)
- More: www.reuters.com/world/europe/german-coalition-set-pass-2025-budget-mid-term-financial-plan-2024-07-17/
Tagged under