German Finance Minister Plans Increased Borrowing Amid Economic Slowdown

Christian Lindner proposes raising net borrowing to €56.5 billion in 2025 due to weaker economic forecasts and higher unemployment.

The proposed borrowing increase is €5.2 billion higher than the initial 2025 budget plan.
The adjustment follows a new economic forecast predicting a 0.2% contraction in Germany's GDP for 2024.
The additional funds aim to offset reduced tax revenues and increased unemployment-related expenses.
Despite the increased borrowing, a €12 billion budget gap remains unresolved in Lindner's financial plan.
The borrowing aligns with the debt brake rules, allowing higher debt during economic downturns.