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Budget Includes Growth Initiative, With Public Employment Frozen (2/2)

GERMANY
  • Overall, the 2025 budget appears to hold social spending broadly constant on an inflation-adjusted basis (official details remain limited as of now).
  • Total investment spending is projected to jump by 10.2% vs 2024 (to E78bln) on the back of a 'growth initiative' program, which is intended to foster economic activity through a set of enterprise tax breaks and a subsidy program.
  • On another note, Lindner said there will be no public sector employment growth in 2025 (except a minor number of police jobs already agreed on earlier). The public sector has been the major driver of headline employment in recent quarters ('Employment Rebounds In Q1 On Services, With More Hours Worked' - MNI, May 17).
  • The 2025 budget is expected to receive final parliamentary approval in November.
  • Press statements on 'Growth initiative' / budget 2025 and supplementary budget 2024
EblnExpendituresRevenues (excl. net issuance)Net issuance
2024 initial plan476.8437.839.0
Δ12.10.711.3
2024 supplementary488.9438.550.3
Δ-8.3-1.7-6.5
2025 plan480.6436.843.8
2026 plan474.6436.038.6
2027 plan486.2451.834.4
2028 plan497.8467.929.9

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