Parliament postpones 2025 budget in view of approaching elections - Parliament approves 2025 budget, facing delay due to fresh elections
The new black-red coalition government in Germany, composed of the CDU/CSU and SPD, has delayed the ratification of the 2025 budget, which was initially scheduled for 2026. The delay was due to the early elections that took place.
The budget, totalling 502.5 billion euros, includes further debts for military and infrastructure projects. The majority of the funds from the infrastructure special fund, a 500 billion euro fund that was constitutionally amended before the new government took office in March, will be allocated to the climate and transformation fund.
The 2025 budget deficit is estimated at 81.8 billion euros. Due to the delay, the budget will only be valid for around three months after its planned consideration by the Bundesrat next Friday.
Expenditures for defence, civil and population protection, intelligence services, and aid to states illegally attacked are now exempt from the debt rules if they exceed one percent of GDP.
The budget draft for 2026 is scheduled to be passed by the end of the year. The specific law implementing the 500 billion euro infrastructure special fund was recently approved by the votes of the Union and SPD.
In 2025, around 37 billion euros will be available from the infrastructure special fund. The fund will provide investments for transport infrastructure, including the railway.
Unfortunately, no new information about the current year's deficit was provided. However, the expected deficit for 2025 is anticipated to exceed 140 billion euros due to the 2025 budget.
The provisional budget management that has been in effect up to this point, which restricts the government's scope, will no longer apply once the 2025 budget is ratified. The Bundestag will deal with the budget draft for 2026 the following week.
A budget supplementary bill for implementing the relaxation of the debt brake in the defense and security sector was passed. No new information about further debts for military and infrastructure projects was provided.
No new information about the climate or infrastructure funds was provided in this article. The budget for 2026 is expected to be a crucial step in shaping Germany's financial and infrastructure landscape for the coming year.
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