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Bundesrat Clears 2025 Budget and €500 Billion Infrastructure Fund

Presidential assent would end provisional budgeting after months of delay.

Overview

  • The Bundesrat declined to call the mediation committee, sending the budget to President Frank-Walter Steinmeier for signature.
  • The 2025 plan sets €502.5 billion in expenditures with €81.8 billion in new federal borrowing, rising above €140 billion when defense and infrastructure debt are included.
  • Lawmakers also created a €500 billion special fund for infrastructure and climate projects, including €100 billion earmarked for the Länder.
  • A budget-accompanying law carves out defense and civil-protection spending exceeding 1% of GDP from Germany's debt-brake rules.
  • State leaders, including Brandenburg’s Dietmar Woidke, pressed for swift disbursement and faster approvals, warning of political fallout if projects stall.