Lars Klingbeil, the German Finance Minister, has urged all government departments to implement savings for the 2025 budget. He emphasized that relying on the 500-billion-euro special fund for infrastructure and exempting defense spending from debt brakes is not an option. Klingbeil aims to present a well-calculated and consistent budget. He highlighted that constitutional changes have created opportunities for future investments, not merely to fill budget gaps.
Klingbeil believes that previous governments could have avoided financial pitfalls with more borrowing flexibility. He also announced plans to present the delayed 2025 budget draft on June 25, with the parliament's initial review before the summer break. The final approval is expected in September.
Simultaneously, Klingbeil will propose legislation for the infrastructure and climate protection fund, initiated by the coalition of Union, SPD, and Greens before government formation. This disciplined budgetary approach is essential amid declining tax revenues in regions like Bremen and Niedersachsen, which face significant financial challenges in the coming years.
