Germany: Draft budget for 2025 finalized

The plan for the 2025 project was finalized today by its federal government , following lengthy negotiations providing for public expenditure of EUR 480.6 billion and re-appropriation of EUR 43.8 billion . In particular, Germany’s budget also includes significant cuts, while according to the opposition, it moves to the limits of constitutionality and only marginally respects the ‘split debt’, with the financial gap reaching EUR 17 billion. The plan also adopts the government’s ‘development initiative’ in order to stimulate the German economy by a series of targeted measures. “An important impetus will be given to economic policy in order to make Germany a more attractive destination for businesses. New margin of manoeuvre in the budget can only be created through greater economic growth, which, to achieve this, should increase competitiveness and boost innovation,” Finance Minister Christian Lindner (FDP) said. “With his financial tricks, the Finance Minister is once again heading to the limit of constitutionality. This is not an approach to an honest businessman,” commented Bundestag Budget Committee Head Helge Brown and North Rhine constitutional judge- Westphalia Yoahim Viland stressed to BILD that “if the federal Constitutional Court’s restrictive case law continues, it is not without risk (en. the budget plan). Such a redistribution should be justified and I still have nothing about it.” The draft budget will be submitted to the Bundestag after the summer closure of work, with the aim of being approved by November. However, the process is not expected to be easy, as parliamentary groups and even government parties are already making specific demands for the 2025 budget. The director of the Social Democratic Party (SPD) Katya Mast said the financial gap would be limited to a one-digit amount in the implementation of the budget and stressed that SPD MPs would insist on claiming exemptions on the “sense of debt”.