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EU countries approve Germany’s budget plans

by AI | 13.Oct 2025 | Europe in brief AI

Germany plans to invest billions in defense and infrastructure – and to incur new debts. The EU Council approves the plans.

The German Finance Minister Lars Klingbeil (SPD) is coming to a meeting with his EU counterparts. Photo: Katharina Redanz/dpa

Brussels (dpa) – The Council of the European Union has approved the budget plans of the German federal government, including planned billion-euro debts. Furthermore, the finance ministers of the other EU countries agreed at a meeting in Luxembourg that Germany may use a special rule for defense spending. If more debts are incurred due to investments in armament than are actually allowed, Berlin should not have to fear any legal proceedings.

The body of the governments of the EU member states is following the recommendation of the EU Commission from last month by approving the plans of the federal government. The Brussels authority had stated in September that the German concept for the years 2025 to 2031 is in line with European budget guidelines.

Berlin plans to invest billions 

The governing coalition plans to take on massive debts in the coming years in order to invest more in defense as well as in infrastructure and climate protection. For this purpose, the debt brake enshrined in the Basic Law (Constitution) has been relaxed. The so-called special fund for infrastructure and climate protection amounts to 500 billion euros.

It was not entirely certain beforehand that the Commission would accept the German budget plan. Experts from the Brussels think tank Bruegel had previously expressed doubts about whether the federal government could comply with EU debt guidelines with its approved billion-euro financial package.

While it is expected that Germany will temporarily breach the guidelines in the coming years, the EU Commission stated. However, fundamentally, the plans of the Federal Ministry of Finance make economic sense, and the rules allow for this. Together with the special exception rule for defense, they provide Germany with a clear and compliant path. (October 10)