Traffic Light Coalition Reaches Agreement on Budget and Stimulus Package for 2025 Election Year

After months of debate, Germany's traffic light coalition has successfully reached an agreement on key points for the 2025 federal budget and a stimulus package. Chancellor Olaf Scholz views this as pivotal for the government's work until the upcoming federal election.

The budget includes record investments, tax cuts, and compliance with the debt brake, aiming to boost economic growth and employment. Despite some reservations from the German industry and criticism from the Jusos youth organization, the coalition stands united, emphasizing stability amidst rising far-right forces in Germany and Europe.

Social associations, however, express concerns over the prioritization of the debt brake over social investments, calling for more support for those in need and improvements in social services.