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Germany Approves Record €502.55 Billion Budget Amid Criticism

9/17/2025

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Summary

Story summary

The Bundestag's Budget Committee approved a record federal budget of €502.55 billion for 2025 amid political turmoil.
Critics claim the budget obscures actual debt levels, forecasting a net new debt of 3.3% of GDP, breaching Maastricht criteria.
The defense budget will increase to €90 billion, aiming for €150 billion to enhance military readiness.
Projected deficits of €34 billion in 2027 and €74 billion in 2029 raise concerns about future funding gaps and potential tax hikes.
Analysts caution that Germany may shift towards a socialist model, with state spending expected to surpass 57% of GDP.

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Story summary

The Bundestag's Budget Committee approved a record federal budget of €502.55 billion for 2025 amid political turmoil.
Critics claim the budget obscures actual debt levels, forecasting a net new debt of 3.3% of GDP, breaching Maastricht criteria.
The defense budget will increase to €90 billion, aiming for €150 billion to enhance military readiness.
Projected deficits of €34 billion in 2027 and €74 billion in 2029 raise concerns about future funding gaps and potential tax hikes.
Analysts caution that Germany may shift towards a socialist model, with state spending expected to surpass 57% of GDP.