Germany’s lawmakers began scrutinizing a €520.5 billion budget for the upcoming fiscal year, approved by the cabinet on July 30, 2025. The budget emphasizes increased spending on defense and infrastructure, with defense allocations rising to €65 billion, a 12% increase from the previous year, to bolster NATO commitments amid heightened global tensions. Infrastructure funding totals €45 billion, targeting road and rail upgrades, including the final phase of the Suedlink power line project starting in Bavaria. The budget includes €12 billion in new borrowing, triple the amount from last year, to support these initiatives. Unemployment rose less than expected in July, with 2.8 million people out of work, maintaining a 6.2% unemployment rate, despite economic contraction of 0.1% in the second quarter due to reduced U.S. demand. Retail sales increased by 1.0% in June, signaling some economic resilience. Foreign Minister Johann Wadephul, during a visit to Jerusalem on August 1, called for enhanced humanitarian aid to Gaza and will travel to the West Bank on August 2 to continue diplomatic efforts. Additionally, Germany will deliver two Patriot missile systems to Ukraine, securing priority access to future U.S. systems in return. The budget also reflects a 28% surge in military recruits from January to late July, supporting plans to strengthen NATO defenses. These developments underscore Germany’s focus on security and economic stability.
www.34news.online
www.34news.online
