In a significant breakthrough, the German government has reached an agreement on a budget for 2025 and a stimulus package for its economy, which is the largest in Europe. This resolution comes after months of discord that cast uncertainty over Chancellor Olaf Scholz’s center-left coalition.
Chancellor Scholz, a Social Democrat, alongside leaders of the Free Democrats and Greens, finalized the budget in the early hours of Friday following extensive negotiations. Details of the agreement were set to be announced in a news conference later in the day.
Taking office after the 2011 federal elections, Scholz’s leadership marked a shift towards modernization, with a strong focus on climate protection, infrastructure development, and research initiatives. However, this strategy was deemed illegal by the Constitutional Court in November 2023, necessitating adjustments and cuts in various areas.
The resulting strain within the ruling parties, particularly tensions between the Social Democrats, Free Democrats, and Greens, raised concerns about the government’s stability. The Green Party demanded parliament to suspend the “debt brake” policy to allow for more borrowing to support Ukraine and bolster Germany’s defense capabilities.
The disagreements and uncertainties had sparked fears of the government’s collapse and the possibility of an early parliamentary election, raising questions about the political landscape in Germany and its potential impact on