Overview
- Finance Minister Lars Klingbeil’s 2025 proposal allocates €503 billion in spending, a 6.1 percent increase from 2024, including €81.8 billion in new loans and over €60 billion from debt-funded special assets.
- Record investments of €115 billion mark a 55 percent rise over last year and draw on the core budget, special funds and the climate and transformation fund.
- A coalition of unions and social and environmental welfare groups is calling for grant-based financing for pensions, healthcare, social infrastructure and climate protection rather than loan-backed allocations.
- Since January, provisional budget rules have prevented new programs from starting until the full 2025 budget is approved by the Bundestag.
- Analysts warn of potential financing gaps of around €144 billion between 2027 and 2029 due to slower tax-revenue growth and rising social-insurance subsidies.