{"id":212894,"date":"2025-06-25T10:29:11","date_gmt":"2025-06-25T10:29:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/212894\/"},"modified":"2025-06-25T10:29:11","modified_gmt":"2025-06-25T10:29:11","slug":"new-spendthrift-germany-will-face-reform-challenge","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/212894\/","title":{"rendered":"New spendthrift Germany will face reform challenge"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/4ZPOODTKVBLKFDLIGJEDGGRMBI.jpg\"   width=\"5500\" height=\"3667\" alt=\"Danish Prime Minister Mette Frederiksen visits Berlin\"\/><\/p>\n<p>German Chancellor Friedrich Merz speaks during a joint press conference with Danish Prime Minister Mette Frederiksen (not pictured), at the Chancellery in Berlin, Germany June 11, 2025. REUTERS\/Annegret Hilse<\/p>\n<p>Chancellor Friedrich Merz\u2019s cabinet adopted a plan to boost infrastructure and defence outlays, with 115 bln euros of investment coming in 2025. This will help Germany and Europe\u2019s weak economies. But a shakeup of Berlin\u2019s regulatory straitjacket is needed for a lasting impact.<\/p>\n<p data-testid=\"promo-box\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__small_body__2vQyf article-body__promo-box__3bCm_\"> Sign up  <a data-testid=\"Link\" href=\"https:\/\/www.breakingviews.com\/columns\/breaking-view\/new-spendthrift-germany-will-face-reform-challenge-2025-06-25\/undefined?location=article-paragraph\" referrerpolicy=\"no-referrer-when-downgrade\" class=\"text__text__1FZLe text__inherit-color__3208F text__inherit-font__1Y8w3 text__inherit-size__1DZJi link__link__3Ji6W link__underline_default__2prE_\" target=\"_blank\" rel=\"noopener\">here.<\/a><\/p>\n<ul class=\"context-news__list__2BgxS\">\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__small_body__2vQyf context-news__list-item__2U7e5\">Germany\u2019s cabinet approved on June 24 a draft budget for 2025 and a budget framework for 2026 with record investments to revive the economy and a strong commitment to defence spending ahead of a key NATO summit.<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__small_body__2vQyf context-news__list-item__2U7e5\">To stimulate growth after Europe\u2019s biggest economy contracted for three consecutive years, the drafts include investments of 115.7 billion euros ($134 billion) in 2025 and 123.6 billion euros in 2026, up from 74.5 billion euros in 2024.<\/li>\n<\/ul>\n<p data-testid=\"SignOff\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__extra_small__1Mw6v body__full_width__ekUdw body__extra_small_body__3QTYe sign-off__text__PU3Aj\">Editing by Neil Unmack; Production by Oliver Taslic<\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__small_body__2vQyf article-body__element__2p5pI article-body__trust-badge__D_brm\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles\" referrerpolicy=\"no-referrer-when-downgrade\" rel=\"noopener\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__small__1kGq2 link__link__3Ji6W link__underline_default__2prE_ link__with-icon__3x3oD\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a data-testid=\"AuthorBioImageLink\" class=\"author-bio__author-image__3uDqF\" href=\"https:\/\/www.breakingviews.com\/authors\/pierre-briancon\/\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__white__3r45t text__regular__2N1Xr text__extra_small__1Mw6v body__base__22dCE body__extra_small_body__3QTYe author-bio__description__3uv33\">Pierre Brian\u00e7on is a Breakingviews columnist, writing on European business and economics. He was previously a writer or editor at Barron\u2019s, Politico, and Breakingviews for a first stint as Paris correspondent and European editor. For the first part of his career he was a foreign correspondent and editor at Lib\u00e9ration, the French newspaper. He was also an economics columnist for Le Monde and for French public radio.<\/p>\n","protected":false},"excerpt":{"rendered":"German Chancellor Friedrich Merz speaks during a joint press conference with Danish Prime Minister Mette Frederiksen (not pictured),&hellip;\n","protected":false},"author":2,"featured_media":212895,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[84730,84731,84732,36313,84733,84734,84726,84735,84736,84749,84727,84737,81850,84738,12920,2000,84751,299,84752,3671,84739,1824,84740,84741,84756,84764,84754,84763,84767,84761,84759,84765,84760,84766,84755,84762,84757,84753,84758,84742,84728,84743,84744,84729,84750,84745,84746,84747,84748],"class_list":{"0":"post-212894","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-anlins","9":"tag-bact","10":"tag-bisv","11":"tag-biz","12":"tag-bnk","13":"tag-bnks","14":"tag-brv","15":"tag-brvbv","16":"tag-bsvc","17":"tag-ceeu","18":"tag-clm","19":"tag-cmpny","20":"tag-de","21":"tag-eco","22":"tag-emea","23":"tag-eu","24":"tag-europ","25":"tag-europe","26":"tag-ezc","27":"tag-fin","28":"tag-fins","29":"tag-germany","30":"tag-mce","31":"tag-mevn","32":"tag-n2bact","33":"tag-n2bisv","34":"tag-n2bnks","35":"tag-n2bsvc","36":"tag-n2ceeu","37":"tag-n2cmpny","38":"tag-n2de","39":"tag-n2emea","40":"tag-n2europ","41":"tag-n2ezc","42":"tag-n2fins","43":"tag-n2mce","44":"tag-n2mevn","45":"tag-n2stx","46":"tag-n2weu","47":"tag-news1","48":"tag-rep","49":"tag-stx","50":"tag-topcmb","51":"tag-topnws","52":"tag-weu","53":"tag-xdnp","54":"tag-xpco","55":"tag-xpmf","56":"tag-xrnp"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114743539408046226","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/212894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=212894"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/212894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/212895"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=212894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=212894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=212894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}