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2025-09-18 21:15:59
[Historic Breakthrough! Germany's Budget Overhaul: Massive €116 Billion Investment] (1) The German parliament approved the 2025 annual budget on Thursday, marking a "huge paradigm shift" in the country's fiscal policy. (2) The budget plans a total investment of nearly €116 billion, thanks to a €500 billion infrastructure fund and debt forgiveness for defense spending. (3) While stimulating economic growth, the budget will also increase defense spending to support Ukraine and aim to meet more ambitious spending targets set by NATO allies. (4) Although the 2025 budget has been approved, budgetary challenges remain in the coming years. (5) Borrowing for the 2025 core budget is projected to be €81.8 billion, which, when combined with borrowing for the infrastructure and defense funds, will bring the total to €143.2 billion. (6) Due to disagreements within the ruling coalition over welfare spending cuts, a €30 billion budget shortfall is projected for 2027. (7) The 2026 draft budget will begin debate in parliament next week, with final approval expected in November.
