The German Federal Council (Bundesrat) approved the 2025 federal budget on Friday, enacting legislation that takes effect retroactively from January 1, 2025, officially concluding the interim budget management previously in place. No motions to invoke the Conciliation Committee were filed during the process.
The approved budget allocates approximately €502.5 billion, representing a growth of roughly five percent compared to the 2024 financial year. This figure is, however, €460 million less than initially proposed in the government’s draft. New debt is projected to reach nearly €82 billion, excluding funds allocated to special purpose vehicles. Investment provisions within the budget law total around €63 billion.
According to official sources, key investment priorities will be directed towards infrastructure, mobility, digitalization, innovation, education and research, climate protection and both domestic and international security. Significant portions of the allocated funds are earmarked for the modernization of rail, road and bridge infrastructure.