Germany Secures 2025 Budget Deal Amid Economic Challenges

Germany's coalition government has clinched a 2025 budget deal to stick to borrowing rules and revitalize economic growth, while financing a military overhaul to meet NATO targets. This deal, reached after months of negotiations, aims to provide economic stability and counteract far-right political forces gaining ground in Europe.

Germany's coalition government has finalized a 2025 budget deal, adhering to the country's stringent borrowing rules while introducing a comprehensive plan to boost the struggling economy and fund a significant military upgrade to meet NATO objectives.

Chancellor Olaf Scholz announced the agreement after months of deliberations within the three-way coalition, which has faced declining popularity amid a cost-of-living crisis. Scholz emphasized that the deal would navigate Germans through "turbulent and difficult times" and counteract the rise of far-right forces in Europe, including Germany.

The budget, featuring a record 57 billion euros in investment and net borrowing of 44 billion euros, aims to enhance economic output, address labor shortages, and support families and children. However, it also involves spending cuts in other areas and adheres to the constitutional debt brake, marking a cautious yet forward-thinking approach for the coalition government.

(Disclaimer: With inputs from agencies.)