Advertisement

Close this content

Germany Enacts Provisional Budget for 2025 Before Snap Elections

Kamil Kowalcze

16 December 2024 at 7:53 am·1-min read

(Bloomberg) -- Germany’s finance ministry announced plans to implement a provisional budget at the start of 2025. The move comes after the collapse of Olaf Scholz’s three-party coalition and as the country prepares for elections in February.

Most Read from Bloomberg

Finance Minister Joerg Kukies’s budget department sent a letter to all ministries and government authorities informing them that the ruling minority government will manage Germany’s finances via a provisional budget until the new government can devise its own finance plan, according to senior Finance Ministry officials. The temporary budget will be based on the government’s 2025 draft budget.

ADVERTISEMENT

Under the spending plan, the government can only disburse funds that are already committed and required by law to keep the country functioning. This includes unemployment and child benefits, student grants and construction projects that are planned or already underway. Parliament can also authorize additional spending in the event of an emergency. Provisional budget management is common after elections to ensure the incoming government has financial room to maneuver.

The preliminary budget became necessary after the three governing parties failed to agree in November on the 2025 budget, prompting Scholz to discharge Free Democrat Christian Lindner from his duties as finance minister. Lawmakers on Monday are set to approve a measure that would dissolve parliament and pave the way for early elections on Feb. 23.

The provisional budget will remain in place during coalition negotiations and until the new government draws up its own budget for 2025. Senior officials in the finance ministry expect that this will take until the second half of next year.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

Australian Associated Press
Trump ramps up campaign against diversity job programs
America's new president is pressuring the private sector on diversity after ordering an end programs aimed at promoting opportunities for women and minorities.
Australian Associated Press
Spain PM urges EU push to end anonymity on social media
Spanish Prime Minister Pedro Sanchez says he wants the European Union to push to scrap anonymity on social media platforms.
Australian Associated Press
BBL's Thunder to Sixers: 'You're scared and vulnerable'
Tanveer Sangha has lit the fuse for a fiery Big Bash League grand final qualifier between local rivals the Sydney Thunder and Sydney Sixers.
Australian Associated Press
US military sends extra 1500 troops to border: official
The Pentagon will begin deploying about 1500 active duty troops to help secure the southern border of the United States, officials say.
Australian Associated Press
Even Sinner rapt about Hamilton's first Ferrari drive
Italian fans - and Jannik Sinner - have been excited by Lewis Hamilton's first Ferrari F1 drive - but nobody was as exhilarated as the Britis great himself.
Australian Associated Press
Bray stars again as Aussie girls march on at World Cup
Australia's teenagers have swept through their group matches unbeaten at the Women's Under-19 T20 World Cup in Malaysia with Caoimhe Bray again starring.
Australian Associated Press
Badosa's ride from quarantine hell to Open semi-finals
An Australian Open semi-final against two-time defending champ Aryna Sabalenka is just another challenge for Paula Badosa after years of overcoming adversity.
Australian Associated Press
India blitz England led by Abhishek's monster hitting
India have crushed England in the first T20I at Eden Gardens as the visitors' new white-ball era under Brendon McCullum began with a seven-wicket loss.
Australian Associated Press
Dark theory on foreign actors behind anti-Semitic crime
As authorities investigate whether foreign actors are paying Australians to commit acts of anti-Semitism, experts are warning they won't be easy to track down.
Australian Associated Press
State budget to expose rival party's financial 'chaos'
A state government has issued a dire warning as it prepares to release its mid-year financial update, three months after ousting the previous Labor government.
Australian Associated Press
Woman's missed heart attack prompts push for change
A woman who died of a heart attack in an emergency department was misdiagnosed as having an adverse reaction to codeine, a coroner has found.
Australian Associated Press
Anxious wait for gender-diverse Aussies heading to US
US President Donald Trump's executive orders could pose issues for some Australians hoping to travel across the Pacific.
Australian Associated Press
Driver who killed five people and dog returns to court
A man who ignored warning signs at a notorious intersection and caused a crash that killed five people and a dog will return to court ahead of his sentence.
Australian Associated Press
The 10-year freeze impacting mental health 'crisis'
As concerns grow over an exodus of psychiatrists from the public health system, there are calls to loosen the shackles on overseas-trained doctors.
Australian Associated Press
'Why not me?' - Demon won't give up on grand slam dream
Despite a demoralising Australian Open quarter-final loss to Jannik Sinner, Alex de Minaur believes he hasn't hit his ceiling and can still contend for a slam.
Australian Associated Press
Clean energy incentives must not 'support injustices'
A centrepiece Labor policy will be put to the test months before an election as mining companies, clean energy groups and unions comb through its implications.
Australian Associated Press
Auckland's Corica rues VAR call in table-topping draw
Auckland's Steve Corica has questioned VAR's intervention that allowed Adelaide a late goal in a 2-2 draw that still leaves the Reds top of the ladder.
Australian Associated Press
Man killed, two hurt in Japan train station stabbing
A knife attack outside a train station in Nagano has left one person dead and two injured, Japanese police say.
Australian Associated Press
Afghan man held after two killed in German knife attack
A toddler and a man have been killed in a knife attack at a park in Germany, police say.
Australian Associated Press
Melbourne outlast Wildcats to spoil Cotton's party
Perth Wildcats sharpshooter Bryce Cotton was held to just 14 points in his 250th NBL game as Melbourne United posted a tense win on the road.