The German cabinet plans to approve the 2025 budget after months of debate, hoping that the economic recovery will help close the 17 billion euro gap between expected spending and revenue.
Germany’s budget deficit in 2025 may lead to a reduction in military aid to Ukraine – up to 4 billion in 2025. Reuters wrote this on Wednesday, July 17.
The German cabinet plans to approve the 2025 budget on July 17 after months of debate in hopes that the economic recovery will help close the 17 billion euro gap between expected spending and revenue.
The eurozone’s biggest economy has emerged from recession at the start of the year, but growth has been slower than expected and the German government, like Britain and France, is struggling to plug the budget hole.
The annual budget was approved taking into account medium-term financial planning until 2028, when the special armed forces fund designed to meet NATO’s minimum spending targets expires. A year before the federal election, reaching agreement on a budget and a long-awaited economic restart package posed a major test for the coalition.
The fund was created shortly after the start of the full-scale Russian invasion of Ukraine, the amount of funds here is 100 billion euros.
Treasury sources said the regular budget deficit would be €39 billion by 2028, with €28 billion needed to meet the NATO target without special funding.
Since the start of Russia’s invasion of Ukraine, Germany has been one of Kyiv’s most important partners: the country transfers various types of weapons, especially Taurus missiles, tanks, artillery and air defense systems.
It was previously known that Germany will allocate another 60 million euros for humanitarian aid to Ukraine, especially for the eastern regions.
We remind you that Latvia and Germany agreed on the joint purchase of drones to support Ukraine as part of a drone coalition.
Source: korrespondent
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