Overview

• Parliament will vote June 24 on the 2025 draft budget after national elections delayed approval and nearly six months under a provisional funding arrangement.
• The plan foresees net borrowing of €81.8 billion in 2025 rising to €126.1 billion by 2029 and totals approximately €847 billion in debt over the legislative period.
• A law passed in March relaxed Germany’s debt brake, creating special funds including a €500 billion infrastructure pool alongside new military spending reserves.
• Defense outlays are set to more than double to €152.8 billion by 2029, reaching 3.5 percent of GDP and meeting the updated NATO target six years ahead of schedule.
• The budget breaks with years of austerity to channel unprecedented investment into roads, railways, hospitals and broader economic stimulus.