Germany's 2025 Budget Deal Reached Amid Coalition Tensions

Germany's government has finally agreed on the 2025 budget, highlighting increased spending on defense and affordable housing. The agreement follows intense negotiations among coalition members Scholz, the Free Democrats, and Greens. It aims to balance security, social cohesion, and growth, addressing key issues like the war in Ukraine and climate change.

In a landmark agreement, the German government announced on Friday that it has successfully negotiated the budget for 2025, resolving months of internal conflict within Chancellor Olaf Scholz's center-left coalition.

Scholz, leading the Social Democrats alongside the Free Democrats and Greens, reached a consensus after lengthy discussions. The agreed plan incorporates increased spending on defense and affordable housing, aiming for formal ministerial approval later this month.

Intended to reassure citizens amid global uncertainties such as the war in Ukraine, climate change, and irregular migration, the budget seeks a balance between security, social cohesion, and economic growth. Critics, however, remain skeptical about the feasibility of the financial plans, particularly regarding defense spending.

(With inputs from agencies.)