24-06-2025
German Cabinet Backs Draft 2025 Budget, Mid-Term Finance Plan
German Chancellor Friedrich Merz's cabinet approved the government's 2025 budget and medium-term finance plan, including a big increase in net new borrowing to help finance the country's military buildup.
This year's budget includes net new debt of €82 billion ($95 billion), which will rise progressively to just over €126 billion in 2029, according to a document distributed Monday by the government in Berlin. Over the five years through 2029, net new borrowing will total about €500 billion.
