Overview

• The upper chamber declined to call the mediation committee, so the budget will take effect after President Frank-Walter Steinmeier signs it.
• The 2025 federal plan sets spending at €502.5 billion and core net borrowing at €81.8 billion, with total new debt topping €140 billion once defence and infrastructure credits are included.
• The €500 billion special fund will finance long-term infrastructure and climate projects, including €100 billion earmarked for the Länder.
• The Bundesrat also cleared a companion law that exempts defence and civil protection spending from the debt brake once it exceeds 1% of GDP.
• Implementation pressure is mounting, with Brandenburg’s Dietmar Woidke urging faster permitting, Finance Minister Lars Klingbeil vowing quick disbursement and an Infrastrukturbeschleunigungsgesetz, and Bremen’s Björn Fecker criticizing potential gas investments.