Cabinet to sign off on 2025 draft budget – DW – 06/24/2025

Germany will promote defense spending up to 3.5% of GDP by 2029, Reuters said on Monday, the goal is to send a strong signal with its 2025 budget before this week’s NATO summit.

Germany’s total defense spending will increase from € 95 billion ($ 108.89 billion) to 2025 for 2025 to € 162 billion in the budget structure for 2029.

Germany will be able to borrow a total of € 378.1 trillion for defense between 2025 and 2029 for debt break improvement from March (below lake).

In March, the Upper House of Germany passed the country’s borrowed rules to improve and revive the € 500 billion ($ 542 billion) funds to revive the largest economy of its infrastructure and revival.

Constitutional amendment to loosen the so-called debt brakes allows for D-Facto unlimited expenses on defense and security.

Germany’s draft budget includes a net new loan of € 82 billion, which will exceed € 126 billion in 2029, according to Bloomberg News.

Prior to the change of March, the German Parliament suspended the debt brake several times during the Covid -19 epidemic and during the Russian invasion of Ukraine.

After Tuesday’s cabinet meeting, the budget of 2025 is to be introduced in the Bundestag, the lower house of Germany. The final approval is due to this September.

The 2026 plans agreed with a vote in Bundestag by the end of the year due to the entire agreements by the cabinet in late July late July.

Good day! The German Finance Minister Lars Klingbill is set to submit the first draft of the 2025 budget.

The budget was delayed due to national elections in February this year, and after the German Parliament comes in favor of a major fiscal package in this march which includes changes in debt policies to spend more on defense as well as € 500 infrastructure funds.

We will bring you the latest news, which includes announcements from a press conference to be held at 10:45 pm (0845 GMT/UTC).