German parliament approves 2025 budget with major defense spending boost

BERLIN

The German parliament approved the 2025 budget Thursday with significantly increased defense spending, supporting the government's plan to take a leading role in European security.

Lawmakers in the Bundestag passed the first budget under Chancellor Friedrich Merz's conservative-left coalition government with 324 votes in favor and 269 against, following days of heated debate.

The budget allocates €502.5 billion ($591.7 billion) in total expenditures – about €25 billion ($29.4 billion) more than the previous year. Defense spending received a significant boost, with €62 billion ($73 billion) designated for this sector, an increase of €10 billion ($11.8 billion) from last year. An additional €24 billion ($28.3 billion) will come from a special defense fund, bringing total military spending to over €86 billion ($101.3 billion).

Social spending remains the largest budget category in the government's 2025 budget, continuing the trend from previous years. The Labor and Social Affairs Ministry will receive approximately €190 billion ($223.9 billion), representing more than one-third of total expenditures. This allocation includes €122.5 billion ($144.3 billion) for the pension insurance system and nearly €52 billion ($61.3 billion) for unemployment benefits.

The budget's approval comes after months of provisional government financing. Germany's previous coalition government collapsed in November 2024 amid financial disputes, leading to early elections in February. With the newly approved budget, the government has planning certainty through the end of the year. Meanwhile, officials have begun preparing the 2026 budget, which they aim to finalize before Christmas.