Germany's 2025 Budget: Awaiting Coalition Agreement

Germany's finance ministry anticipates a provisional 2025 budget by mid-next year, following the collapse of Chancellor Scholz's coalition. A draft from the previous coalition will serve as a temporary measure. The budget might be passed by July 11 if coalition talks proceed quickly, allowing legal financial commitments.

Germany's finance ministry has indicated that a provisional budget for 2025 is unlikely before mid-next year, citing internal sources. This delay follows the November collapse of Chancellor Olaf Scholz's coalition, which hindered the 2025 budget approval process.

Plans are underway to use a draft budget from Scholz's former coalition as a temporary solution. This provisional budget will remain effective until a newly formed government can pass a comprehensive budget.

Following the February 23 elections, swift coalition negotiations could result in the budget's passage in parliament by July 11, although this is considered highly ambitious. Until then, the government retains the ability to meet legal financial obligations, albeit with ministries limited to spending 45% of allocated funds until final approval.

(With inputs from agencies.)