Overview
- The finance ministry’s year-end account shows the core budget overshot the debt-brake allowance by €0.4 billion, which it says is not an official constitutional breach because the rule applies at budget planning.
- Net new federal borrowing totaled about €103 billion versus roughly €143 billion planned, with the core deficit at €66.9 billion rather than the €81.8 billion initially set out.
- Better-than-expected economic performance and higher tax revenue contributed to lower realized borrowing and reduced the legally permitted borrowing envelope after the fact.
- Investment outflows reached €86.8 billion in 2025, up 17% from 2024 but well below the €115.6 billion allocated, and total federal spending came to €555.6 billion versus €590.5 billion planned.
- Roughly €24 billion from the €500 billion infrastructure-and-climate special fund was disbursed by year-end, with transfers to states held up until rules were finalized in mid-December, and the ministry launched an online “Investitionsuhr” as the government advances faster permitting and project prioritization.