Germany's parliament approved on Thursday the nation's first annual budget since sweeping reforms to loosen fiscal rules were passed earlier this year, securing record investments to revive the economy while committing to an increase in defence spending.
The 2025 budget allows for total investment of almost 116 billion euros ($136.94 billion), made possible thanks to a 500-billion-euro infrastructure fund and an exemption from debt rules for defence spending approved in March.
"It is a huge paradigm shift in German fiscal policy," Finance Minister Lars Klingbeil told lawmakers ahead of the vote in the Bundestag, Germany's lower house of parliament.
BOOSTING THE ECONOMY, BOLSTERING DEFENCE
Germany has thrown off decades of fiscal conservatism in the hope that public investment can kickstart the lagging economy, while a boosted defence budget aims to secure future military support for Ukraine and meet more ambitious spending targets for NATO allies.
Under pressure from U.S. President Donald Trump to become more self-reliant in the wake of Russia's invasion of Ukraine, NATO leaders agreed in June to up the defence alliance's spending target to 3.5% of each member's GDP from a previous 2%.
LOOMING BUDGETS GAPS, DIFFICULT DISCUSSIONS
With the 2025 plan secure, the focus of new Chancellor Friedrich Merz's coalition government shifts to budgets for the coming years, with difficult discussions ahead as Merz's conservatives push for savings in welfare, prompting pushback from their Social Democrat partners.
The coalition currently faces a 30-billion-euro hole in its financial plan for 2027.
"We will have to deal with huge challenges there," Klingbeil said, adding, however, that he was confident a solution would be found.
Parliament is set to begin debating the draft 2026 budget next week, with final approval expected in November.
Iran has released the first images of the casket of Supreme Leader Ayatollah Ali Khamenei ahead of his funeral scheduled for the 4th - 9th July, as au...
Kremlin spokesman Dmitry Peskov said on Friday (3 July) that the European Union should take into account allegations of Ukrainian involvement in the 2...
India is investigating a data breach at Tata Electronics that exposed sensitive documents linked to Apple's unreleased iPhone 18 Pro, marking the gove...
Alexandru Munteanu announced his resignation on Friday (3 July) in a surprise move that automatically triggers the fall of Moldova’s government....
Breel Embolo early opener to put Switzerland in control of last-32 tie against Algeria after Spain made easy work of Austria as Portugal left it lat...
Kremlin spokesman Dmitry Peskov said on Friday (3 July) that the European Union should take into account allegations of Ukrainian involvement in the 2022 Nord Stream sabotage when considering Kyiv’s bid for membership.
India is investigating a data breach at Tata Electronics that exposed sensitive documents linked to Apple's unreleased iPhone 18 Pro, marking the government's first public comments on the incident.
Alexandru Munteanu announced his resignation on Friday (3 July) in a surprise move that automatically triggers the fall of Moldova’s government.
At least 40 people were killed after a passenger bus plunged off a highway into a ravine in southwestern Pakistan, officials said on Friday (3 July).
A Russian couple climbed to the top of the Empire State Building and unfurled a banner urging world peace before, in an apparent elaborate marriage proposal that ended with their arrests.
Iranian and U.S. negotiating teams were due in Doha this week, but Iran said on Monday no meeting had been scheduled as weekend missile fire from both sides tested the interim ceasefire to end the four-month-old war.
Iran and the U.S. have concluded indirect talks in Doha without a major breakthrough, with discussions focused on maritime traffic in the Strait of Hormuz and frozen Iranian funds. Both sides are expected to meet again after the funeral of Ayatollah Ali Khamenei.
Negotiations between the U.S. and Iran mediated by Qatar in Doha have concluded, Iran's Deputy Foreign Minister, Kazem Gharibabadi has said.
On 1 July, President of the European Commission Ursula von der Leyen arrived in Azerbaijan on a working visit.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
Rocket Lab has agreed to acquire Iridium Communications in an $8 billion deal, giving the space company a global satellite communications network and accelerating its expansion beyond launch services. The acquisition marks a major step in its ambition to become a fully integrated space business.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment