Scholz’s Cabinet Approves Contentious Federal Budget for 2025

  • Some coalition lawmakers still unhappy with enforced savings
  • Plan faces bruising passage through both houses of parliament
Olaf Scholz during a cabinet meeting in Berlin on July 17.Photographer: Ralf Hirschberger/AFP/Getty Images
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German Chancellor Olaf Scholz’s cabinet approved a draft budget for next year, backing the contentious finance plan that was sealed this month after weeks of squabbling over limited funds.

The budget blueprint, which foresees net new federal borrowing of €43.8 billion ($47.8 billion), now faces a bruising passage through parliament, with some lawmakers in the ruling coalition deeply unhappy with the belt-tightening forced on them by Finance Minister Christian Lindner.