German Coalition Nears Budget Deal as Debt Brake Limits Options
- Scholz’s government to deliver draft as early as Friday
- Budget sees cuts, but more spending on infrastructure, defense
Chancellor Olaf Scholz during a joint news conference in Warsaw, on July 2.
Photographer: Damian Lemanski/BloombergThis article is for subscribers only.
Chancellor Olaf Scholz’s coalition will deliver a draft budget as early as Friday that aims to put an end to political infighting by boosting spending on infrastructure and defense while adhering to debt restrictions, people familiar with the matter said.
Negotiations over the 2025 budget have dragged on for weeks, putting pressure on the parties — Scholz’s Social Democrats, the Greens and the pro-business Free Democrats — to show they can govern after suffering grave setbacks in last month’s European Parliament election.