Weekly proceedings in Germany's Federal Parliament, the Bundestag

In response to the ongoing COVID-19 pandemic and its economic impact, Germany enacted a second supplementary budget for 2021 worth 60 billion euros. This budget, which does not increase the net credit intake for the year, is primarily aimed at funding extensive economic support measures and climate protection initiatives.

The supplementary budget includes targeted investments in climate-oriented projects such as subsidies for replacing gas boilers with heat pumps, raising energy efficiency standards for new buildings, and requiring new heating systems to incorporate 65% renewables by 2024. It also incentivizes biogas production and aims to achieve 30% organic farming in Germany by 2030.

These climate-oriented investments complement broader economic support, including social benefits, loans, and subsidies, designed to sustain consumption and jobs during the pandemic and energy crisis. The goal is to balance immediate economic relief with strategic investments in climate protection and the energy transition, supporting both Germany’s short-term economic recovery and long-term sustainability goals.

The Annual Economic Report of the Federal Government, summarizing key economic developments of the past year and providing an outlook for 2022, highlights the positive economic growth of 2.7% in 2021. However, the service sector, retail, hospitality, and cultural industries continue to be impacted by the pandemic.

As the prognosis for the end of 2022 and the beginning of 2023 is cautiously optimistic, the German government will continue to react with appropriate measures if the economic situation in individual areas requires it. The further economic development will be significantly influenced by the course of the pandemic and the geopolitical situation.

In addition to economic measures, the German government is also focusing on agricultural and food policy reforms. A motion from the coalition factions will create a foundation for a modern agricultural and food policy, including the introduction of a binding animal husbandry labeling system by the end of 2022. The aim is to transform livestock farming in a species-appropriate manner, aligning future investment support with husbandry criteria and adjusting the criteria for species-appropriate stables in building and planning law.

The German Armed Forces will continue to play a role in the region, providing staff personnel and capabilities for air refueling and ground-based airspace surveillance in Iraq, as well as participating in the build-up of the regular Iraqi armed forces. The mandate, with an upper limit of 500 soldiers, will be extended until 31 October 2022.

The German Bundestag has declared an extraordinary emergency situation due to the COVID-19 pandemic, affecting both income and expenditure sides of the federal budget. A comprehensive nutrition strategy is being developed to set clear criteria for animal and environmental protection, enable sustainable nutrition, and ensure fair working conditions. Efforts are also being made to examine how the direct payments of the EU's Common Agricultural Policy can be adequately replaced by honoring climate and environmental performances.

By the end of 2023, the pesticide glyphosate will be removed from the market. The Annual Economic Report includes a 20-page appendix with additional indicators for sustainable prosperity and intergenerational fairness. The presence of Germany and its international partners in the region remains crucial to prevent the resurgence of IS in the region and contribute to more reconciliation in Iraq.

Sources: 1. German Federal Government's Annual Economic Report 2022 2. Germany's Second Supplementary Budget for 2021 3. Climate-oriented investments in Germany's Second Supplementary Budget for 2021