The expected German budget deficit for 2025, which is currently estimated at €26 billion, needs to be reduced to €15 billion, according to Chancellor Olaf Scholz.
Scholz stated that the country’s budget deficit for 2025 must be reduced as part of a strategy aimed at restoring financial stability and controlling government spending in the face of global economic uncertainty.
He emphasized that it is necessary to carefully consider how the deficit will be financed. He also raised the question of what will be the primary source of funding: cuts in the state budget or tax increases.
This issue has sparked important political debates, as, ahead of elections in Germany, the economy and government assistance funding are among the central topics. Scholz stressed that a necessary balance must be found to ensure Germany’s long-term economic stability while also maintaining important international commitments.
