The German Federal Council (Bundesrat) formally approved the 2025 federal budget on Friday, a decision that allows for the cessation of provisional budget management. The law, retroactively effective from January 1, 2025, passed without any requests for mediation committee involvement.
The approved budget outlines expenditures totaling approximately €502.5 billion, representing a growth of roughly five percent compared to the 2024 fiscal year. This figure, however, is €460 million lower than initially proposed in the government’s draft budget. Net new borrowing is slated to reach nearly €82 billion, excluding funds allocated to special asset pools. Investment within the budget law is earmarked at approximately €63 billion.
Official statements indicate that key investment priorities will focus on infrastructure, mobility, digitalization, innovation, education and research, climate protection and both domestic and international security. Substantial resources are planned for the modernization of railway, road and bridge infrastructure.
