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Federal 2025 Budget Approved Internally (2/2)

GERMANY
  • Opposition parties have raised concerns about the legality of the draft earlier. We see at least an outside chance that these might concerns might materialize - which would warrant further budget readjustment and potentially spending cuts, and end in further turmoil in the traffic-light coalition.
  • A break-up of the coalition on the back of this appears rather unlikely, however, since none of the governing parties would have something to gain from this.
  • Passage in parliament is still due, but is to be expected without major alterations after the internal coalition alignment.
  • Press conference expected for later today.
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