BERLIN (Reuters) -Germany’s parliament approved on Thursday the nation’s first annual budget since sweeping reforms to loosen fiscal rules were passed earlier this year, securing record investments to revive the economy and a strong commitment to defence spending.
The budget for 2025 allows for total investment of almost 116 billion euros, made possible thanks to a 500-billion-euro infrastructure fund and an exemption from debt rules for defence spending approved in March.
Europe’s biggest economy has been operating on a provisional budget this year after the former ruling coalition collapsed last November with no time to pass the 2025 spending plans.
The core budget for this year covers spending of 502.5 billion euros ($588.28 billion).
Adding investments from the infrastructure fund and another 100-billion-euro fund for defence created by former Chancellor Olaf Scholz following Russia’s invasion of Ukraine, the budget has a total size of 591 billion euros.
The core budget envisages borrowing of 81.8 billion euros in 2025.
Total borrowing rises to 143.2 billion euros, adding 37.2 billion euros from the special infrastructure fund and 24.1 billion from the special fund for defence, a finance ministry spokesperson said.
(Reporting by Holger Hansen and Maria Martinez, writing by Rachel More, Editing by Madeline Chambers)
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