Budget revolution 2025: Klingbeil presents plans worth billions!

Budget revolution 2025: Klingbeil presents plans worth billions!

Today, Finance Minister Lars Klingbeil presented his first budget draft, which signals a clear change of course in the traffic light coalition's financial policy. In view of the changing global security situation and the ongoing challenges in defense policy, Klingbeil's draft promises massive investments in defense, infrastructure and economic growth. Expenditure for 2025 is expected to total 503 billion euros, with planned new debt of 81.8 billion euros, which will be more than twice as high as in the previous year. Over 60 billion euros will also be available from debt-financed special funds to finance the targeted projects. Radio Leverkusen reports that the federal budget also includes special funds for the Bundeswehr, civil protection and for support to attacked states such as Ukraine. 75 billion euros are earmarked for these measures alone, of which 32 billion euros are financed by debt.

A particularly significant element of the draft is the creation of a debt-financed special fund for infrastructure and climate protection, which will have a volume of 500 billion euros. However, this money may only be used for additional projects that go beyond the normal federal budget. Klingbeil plans to use 27.2 billion euros from this pot for the first investment cycle and 47.9 billion euros in the following year. Bundestag reports that critics such as the Greens fear that the funds cannot be used sensibly for progress or climate protection.

Defense spending in focus

Defense policy plays a central role in Klingbeil's budget proposal. The draft stipulates that defense spending will amount to 62.4 billion euros next year, which is more than 10 billion euros above the previous year's level. By 2029, spending is expected to rise to an impressive 152.8 billion euros. This means that the Federal Republic will exceed the NATO two percent quota with 2.4 percent. In order to meet the new target of 3.5 percent of gross domestic product, the federal government plans to increase defense spending accordingly by 2029. [ZDF](https://www.zdfheute.de/politik/deutschland/wehretat-bundeswehr- Defense-budget-stieg-100.html) highlights that in the context of the current geopolitical situation, there is increasing discussion about expanding military budgets, which leads to a response to the needs of the nation's defense capability.

Critics from across the political spectrum, including the Left and the BSW, warn of an “arms spiral” and fear that the intended increase in defense spending will lead to an overemphasis on military solutions. This increase is seen as a necessary response to changed security policy conditions since the Second World War, which the government considers to be justified.

Economic policy framework

Further spending of 519.5 billion euros is planned for 2026, with 89.3 billion euros from loans in the core budget and 83.4 billion euros from special assets. This also includes the 97 billion euros planned for defense and related areas. The SPD and CDU/CSU factions have already presented draft laws that provide for changes to defense spending in the Basic Law and allow an exception to the debt brake. This could also give countries a certain amount of room for maneuver in their budgets.

The financial policy under Klingbeil represents a departure from the FDP's previous strategy and will therefore be discussed in detail in the Bundestag in the coming weeks to ensure comprehensive approval of the planned measures and investments. The ball is now in the court of the Bundestag and the Bundesrat, which will deal with the budget after the cabinet decision.