The German coalition government has reached a compromise on the 2025 federal budget after months of negotiations.

Chancellor Olaf Scholz defended the agreement, stating it allows for both domestic priorities and aid to Ukraine without local restrictions.

The deal maintains the debt brake, a key demand of the FDP party.

However, the defense budget increase falls short of expectations, raising concerns about military readiness.

Opposition parties and some coalition members have criticized the compromise, questioning its ability to stimulate economic growth.

The agreement includes measures for children and families, as well as infrastructure investments, but faces challenges in long-term defense funding beyond 2025.