US EditionGerman Budget Plans Outline Vast Spending - and Record Debt
- Germany's federal cabinet approved the draft budget for 2025 and key plans for 2026 on June 24 in Berlin, enabling major government spending increases.
- This approval follows a March 2025 law easing Germany's debt brake, allowing higher borrowing to invest in defense, infrastructure, and economic stimulus amid prior underinvestment.
- The 2025 draft budget includes €503 billion total spending with €115.7 billion for investments, €22 billion for railway upgrades, and defense spending rising to €62.4 billion or 2.4% of GDP.
- Finance Minister Lars Klingbeil stated that the Budget, along with the €500 billion investment fund, launches the essential actions required to boost economic strength and enhance security.
- The budget sets borrowing of €500 billion for 2025–29 plus €270 billion from a special infrastructure fund, with parliamentary debates and approvals expected through late 2025 and into 2026.
31 Articles
31 Articles
Germany’s €850bn spree shakes eurozone
Germany is about to flood Europe with debt, and Spain might be the first to feel it. Over the next four years, Berlin plans to issue up to €850 billion in bonds, marking one of the most aggressive borrowing sprees in EU history. This isn’t a bailout or a pandemic recovery plan; it’s a defence, infrastructure, and climate investment strategy backed by the government. The good news is for German… Source
Billions for defence and economy: The cabinet approves the SPD boss's budget. Never before has a finance minister been allowed to make more debt.
In the interview Mathias Middelberg, CDU Group Vize, explains the agreement on the budget with record debt, planned investments and structural reforms. "We need to be able to defend ourselves, that's completely clear and that's just costing money," says Middelberg at WELT TV.
DECRYPTAGE - Merz Government Finance Minister Lars Klingbeil presented a multi-year investment plan that blew up the debt ceiling.
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