German Finance Minister to Present Budget Draft in June, Climate Fund Plans in Focus
Germany’s Finance Minister, Lars Klingbeil, is set to submit a draft of the 2025 federal budget in June, with a focus on the country’s climate and transformation efforts. The minister’s office has announced that the budget draft will be discussed in the federal cabinet on June 25, followed by a first reading in the German Bundestag in the first week of July.
The budget will be subject to intense scrutiny, particularly with regards to the government’s plans for the special fund, as outlined in Article 143h of the German Constitution. The finance ministry has stated that individual plans will be adjusted to reflect the measures that will be financed by the special fund in the future. Similarly, the ministry of economics, transportation and research will see their plans reduced to account for the measures that will be financed by the climate and transformation fund, in line with the previous year’s budget allocations.
The German Transportation Forum, an organization that represents the infrastructure industry, has expressed concerns about the budget draft. While welcoming the swift preparation of the budget, the forum’s managing director, Florian Eck, told the Handelsblatt that it is crucial to ensure that the additional investment needs are not compromised as a result of the adjustments.