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Germany Today

German news in English

Friday, November 22, 2024

German Government Struggles with 2025 Budget Gaps

Published: 2024-07-15

The German government is set to approve its 2025 budget this week, despite an €8 billion funding gap.

Chancellor Olaf Scholz, Vice Chancellor Robert Habeck, and Finance Minister Christian Lindner have spent weeks negotiating to close a €30 billion shortfall.

The cabinet plans to approve the budget on Wednesday, which will then move to parliament for final approval by year-end.

The government is exploring options to fill the remaining gap, including replacing subsidies to the railway and highway companies with loans.

For 2024, a supplementary budget allows €11.3 billion more in debt due to slow economic growth.

The 2025 budget aims to adhere to the debt brake while facing challenges in balancing fiscal responsibility with economic stimulation.