German Government Presents Fiscal Budget for 2025
Berlin, January 6, 2025 – The German government has unveiled its fiscal budget proposal for 2025, entitled “Budget Draft 2025: Setting Clear Priorities.” The budget prioritizes investments in climate protection, education, and digitalization while maintaining fiscal discipline.
Key Highlights
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Investments in Climate Protection: The budget allocates €10 billion to support measures aimed at reducing greenhouse gas emissions and promoting renewable energy sources. The funding will be used to expand charging infrastructure for electric vehicles, invest in energy-efficient technologies, and support research in renewable energy technologies.
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Education and Training: The government has increased funding for education and training by €5 billion. The additional funds will be used to improve teacher training, expand school infrastructure, and support vocational education programs.
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Digitalization: To drive digital transformation, the budget includes €3 billion for investments in broadband infrastructure, digital education, and artificial intelligence research.
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Fiscal Discipline: Despite the increased spending, the government remains committed to fiscal discipline. The budget aims to achieve a deficit of €40 billion, or 1% of GDP. This is below the EU’s Stability and Growth Pact, which sets a limit of 3% of GDP.
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Balanced Budget by 2029: The government aims to achieve a balanced budget by 2029, without raising taxes. This will be achieved through a combination of spending cuts and economic growth.
Minister of Finance Comments
Finance Minister Christian Lindner emphasized the government’s commitment to both fiscal responsibility and necessary investments. “This budget strikes a balance between necessary investments in our future and the need for fiscal discipline,” Lindner said.
“The investments in climate protection, education, and digitalization will lay the foundation for a sustainable and prosperous Germany. At the same time, we are committed to maintaining a sound fiscal position and reducing our deficit over time.”
Parliamentary Approval
The budget proposal will now be submitted to the Bundestag (German parliament) for approval. The budget must be passed by July 31, 2025, in order to take effect.
Haushaltsentwurf 2025 setzt klare Prioritäten
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