More money is needed for investments in infrastructure and defense, according to the authority.
The total threshold for government borrowing during the period July-September is raised to 118.5 billion euro, which means that the plan is to borrow a total of 399 billion euro throughout 2025. In December 2024, the forecast for government borrowing in Germany this year was 380 billion euro.
During the five-year period 2025-2029, the net increase in terms of government borrowing is estimated to be 500 billion.
The infrastructure investments to be financed amount to 500 billion euro over twelve years. And when it comes to German defense spending, the goal is now set at at least 3.5 percent of GDP by 2029.
Currently, Germany spends around 2 percent of GDP on defense spending and US President Donald Trump has, ahead of the NATO summit in The Hague on Tuesday, demanded that defense spending among NATO countries be increased to 5 percent of GDP.
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