Germany will increase public investment to 110 billion euros ($125 billion) in 2025, aiming to modernize its economy and restart growth, Finance Minister Lars Klingbeil announced Tuesday. This marks a significant rise from 2024’s investment level of about 75 billion euros ($85 billion).
Klingbeil, who is also deputy chancellor, emphasized that alongside higher spending, the government will carry out major structural reforms and maintain strict budget discipline. The new coalition government intends to focus investments on defense and infrastructure, addressing long-standing gaps and helping the economy recover from a two-year slowdown.
The 2025 investments will be funded through Germany’s core budget, a special fund for updating aging infrastructure, and another fund dedicated to supporting the transition to a greener economy. The government is currently drafting the 2025 budget, with cabinet approval expected on June 25.
Klingbeil stated, “My top priority is to put Germany on a growth path now. This is how we boost the economy and secure jobs.”
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