Bundestag adopted the household with record investments

The black and red coalition has now managed to do what the traffic light has broken: the federal budget in 2025 has been decided. However, thanks to new debt opportunities, the new federal government also has different financial resources than the old one.

The budget 2025 provides expenditure of around 502.5 billion euros. It is planned to take almost 82 billion euros in the core budget, and there are also billions in loans from special pots for the Bundeswehr and infrastructure. Overall, the new debt is likely to increase to more than 140 billion euros.

This budget is also special because it only applies a few months. After breaking the traffic light coalition and the early election, the ministries have been on the road with a provisional housekeeping since the beginning of the year. The budget now decided creates planning security – but only until the end of the year. The consultations for the 2026 budget will begin in the coming weeks, which is to be adopted before Christmas.

The biggest point of output is the budget for work and social issues. With a good 190 billion euros, more than a third of the federal budget flows into this area. 122.5 billion euros of this go to the pension insurance. Almost 52 billion euros are scheduled for basic security for job seekers, including almost 30 billion euros for the civil allowance that the coalition wants to reform.

There is significantly more money for the Bundeswehr. The defense budget increased to a good 62 billion euros in 2025 – that is ten billion more than in the previous year. In addition, there are another 24 billion euros from the Bundeswehr special fund. For the first time, more than 86 billion euros are available for defense spending, for example for the procurement of new armaments such as ammunition, wheelworkers or naval ships.

The budget of the Ministry of Transport drops by 6 billion to 38.3 billion euros, but remains the largest investment budget. Around 23.7 billion euros are planned for investments in the core budget. In addition, there are 11.7 billion from the special pot for the infrastructure that flow into rails, streets or bridges.

The Bundestag has now also set this special fund with a total of 500 billion euros. From this, additional investments are to be found over a period of twelve years – to renovate bridges and railway lines, to expand the energy infrastructure and digitization. In addition, funds should flow into hospitals, research and development, sports facilities, construction projects and education.

Of the debt financed 500 billion euros, 100 billion go to the climate and transformation funds for projects in climate protection. 100 billion go to the countries.

Finance Minister Lars Klingbeil (SPD) defended the budget against the criticism, especially the left, despite record expenditure, too little is received by the citizens. What the people in the economic flaccid is the most dealing is the fear of their workplace. That is why the government puts an absolute priority “that economic growth comes back to Germany, the jobs are secured here and the jobs of the future will be created”.

The Federal Government also accused the Greens and the Left to trick budget planning instead of investing. Grünen-Chefhaushernäler Sebastian Schäfer complained about the use of the special fund, the investments planned by the Union and the SPD would bring far too little future perspective. “This is how our country is not making progress,” he said. SPD housekeeper Thorsten Rudolph rejected the allegations and spoke of an unprecedented investment package that laid the foundation for comprehensive modernization.

The AfD demanded that much less debts should be made. For this purpose, the faction had proposed to delete climate projects, EU contributions and arms deliveries to Ukraine. The coalition did not take this budget seriously at all because it was only in force, said AfD chief housekeeper Michael Espendiller.

The BSW boss Sahra Wagenknecht, which was no longer represented in the Bundestag, warned the rapidly increasing armaments spending endangered social peace. With the planned significant increase in the defense budget, the welfare state threatens to reach its limits.

While budget in 2025 only applies for a quarter of a year, the concerns of the Union and SPD have long been aimed at the future. As early as 2027, a financing gap of more than 30 billion euros. Finance Minister Klingbeil always says that such a big hole has never had to close a coalition.

Chancellor Friedrich Merz (CDU) speaks of a “difficult task” to convey austerity measures to the citizens. The debates about tax increases and social reforms have long started.

Note: This article has been updated several times.