Germany plans to rein in spending in this year's budget — Reuters

Germany’s new Finance Minister Lars Klingbeil has begun intensive preparations for the 2025 and 2026 budgets, Reuters reported. The new budget focuses on cost savings despite the establishment of a large infrastructure fund. Following the collapse of former Chancellor Olaf Scholz’s coalition, the country has been operating under a provisional financial plan since the start of the year.

Klingbeil told Redaktionsnetzwerk Deutschland that he intends to enforce savings across all ministries. In March, Germany approved plans for a significant increase in spending, including a $570 billion infrastructure fund and exemptions from debt limits for defense expenditures. State Secretary Steffen Meyer linked this decision to the government’s aim to accelerate the country’s economic growth.

The new budget document highlights three main priorities: investments in modernizing the state, structural reforms to enhance business competitiveness, and fiscal consolidation. The draft budget for 2025 is scheduled for cabinet approval on June 25. The first parliamentary debate will take place in July, with revisions and final legislative approval expected in September.