Overview

• The Bundesagentur für Arbeit now forecasts a €5.3 billion shortfall for 2025, nearly quadruple earlier estimates.
• It plans to exhaust its €3.2 billion reserve before drawing on a €2.35 billion federal loan.
• Expenditures for unemployment benefits are projected to exceed initial forecasts by around €4 billion.
• Agency chief Andrea Nahles has ruled out raising unemployment insurance contribution rates.
• Finance Minister Lars Klingbeil must include the loan in the national budget draft due for cabinet approval in late June.