"German public spending rose more slowly than expected last year despite significant outlays for defence and infrastructure, the finance ministry said Friday, vowing to pick up the pace this year. Chancellor Friedrich Merz has vowed to unleash a spending blitz to fix railways, roads and bridges as well as overhaul the long-neglected armed forces, in the process helping revive Europe's struggling top economy."
"However, a larger figure of 115.6 billion had been laid out in the annual budget, which was adopted late after the previous government collapsed, triggering early elections which brought Merz to power in May. "The figures show that the first investments have started but we still need to pick up the pace," said Finance Minister Lars Klingbeil, from the centre-left SPD party which rules in coalition with Merz's conservative bloc."
"As of December 31, nearly 24 billion euros in spending commitments had been made from a 100-billion-euro fund for infrastructure and climate protection, according to the ministry. In terms of defence, 72.2 billion euros was disbursed last year, lower than initial forecasts. In 2025 Berlin borrowed a total of 102.7 billion euros on the markets to finance its budget deficit, well below the 143.2 billion initially planned."
German public spending rose more slowly than expected in 2025 despite significant defence and infrastructure outlays. Chancellor Merz plans a major spending blitz to repair transport networks and overhaul the armed forces to revive the economy. Federal government investment spending increased by over 12 billion euros to 86.8 billion, a 17% rise, but remained below the 115.6 billion laid out in the annual budget. Finance Minister Lars Klingbeil said investments have started but the pace must increase. Nearly 24 billion euros in commitments had been made from a 100-billion-euro infrastructure and climate fund. Defence disbursements totaled 72.2 billion euros and borrowing reached 102.7 billion euros.
Read at The Local Germany
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