After months of argument, the German government has finally agreed budget plans for 2025, according to Reuters.
There remains a €17 billion gap between projected spending and actual revenue but the cabinet hopes the gap will be filled by the raising of extra money as and when the economy improves.
The eurozone’s largest economy just missed going into recession at the beginning of 2024 but current growth is still lower than hoped for.
The approved budget for 2025, reportedly includes a record €78 billion of investments, net borrowing of €43.8 billion and a total budget size of €481 billion, sources told Reuters news agency.
That includes what is known as a «debt brake» which is required under the constitution to cap spending.
«We are complying with the debt brake, which makes us an anchor of stability in Europe,» German Finance Minister Christian Lindner was quoted as saying.
The cabinet also reportedly agreed to an economic package aimed at speeding up the faltering economy and increasing growth by more than half a percentage point in 2025.
