German coalition to agree on Wednesday on draft budget, sources say
Sign up now: Get ST's newsletters delivered to your inbox
FILE PHOTO: German national flags fly atop the illuminated Reichstag building, the seat of Germany's lower house of parliament Bundestag, in Berlin, Germany December 9, 2022. REUTERS/Lisi Niesner/File Photo
Follow topic:
BERLIN - The German cabinet plans to pass its draft for the 2025 budget, which includes a record level of investments of 78 billion euros ($85.07 billion), on Wednesday, finance ministry sources told Reuters on Monday.
Germany's coalition government clinched a 2025 budget deal that will stick to the country's tight borrowing rules while offering a package to rev up stuttering economic growth and finance a massive military overhaul to meet NATO targets.
The budget includes net borrowing of 43.8 billion euros and a total budget size of 481 billion euros, according to the sources, respecting the debt brake, which limits borrowing to 0.35% of gross domestic product.
The government also plans to pass a supplementary budget for the current year with 11 billion euros in additional borrowing, adding up to a total of 50.3 billion in net borrowing, the sources said.
The 2025 budget and the supplementary budget for 2024, will be accompanied by a package of measures that the government reckons will add more than half a percentage point to growth, or an additional 26 billion euros ($28.14 billion) in economic output. REUTERS
