After months of negotiations, Germany's coalition government has reached an agreement on the 2025 federal budget and a growth package.

The deal, announced by Chancellor Olaf Scholz, Finance Minister Christian Lindner, and Economy Minister Robert Habeck, aims to boost economic growth while adhering to debt limits.

Key measures include tax incentives for overtime work, improved depreciation conditions for businesses, and increased investments in housing and infrastructure.

The coalition plans to raise child benefits and increase defense spending gradually.

Despite the agreement, tensions remain within the coalition, particularly from the SPD, over maintaining the debt brake.

The package is expected to increase economic growth by about 0.5% next year.