Germany’s cabinet approved the 2025 federal budget and financial framework for 2026, which includes record investment plans aimed at spurring economic growth after two years of recession.
Investment allocations are projected at €115.7 billion ($134 billion) in 2025, and €123.6 billion in 2026, up from €74.5 billion in 2024.
The budget also includes a medium-term financial plan through 2029, under which defense spending will rise to 3.5% of GDP, funded by nearly €400 billion in borrowing. Defense expenditure is set to increase from €95 billion in 2025 to €162 billion by 2029.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
