Germany's Provisional Budget for 2025

Germany's finance ministry has announced the adoption of a provisional budget for the onset of 2025. This decision follows the dissolution of Chancellor Olaf Scholz's three-party coalition and prepares the country for elections scheduled for February 23, necessitating an interim financial plan.

Finance Minister Joerg Kukies and his budget department have coordinated with all ministries and government bodies, indicating that the interim government will manage the country's finances based on the 2025 draft budget until a new administration establishes its own fiscal strategy.

The temporary budget will limit spending to legally mandated obligations essential for the nation's operations, including unemployment and child benefits, student grants, and ongoing or planned construction projects. In emergencies, parliament can authorize additional expenditures.

The provisional budget was required after coalition parties failed to agree on the 2025 budget in November. Following this, Chancellor Scholz dismissed Christian Lindner, a member of the Free Democrats, from the finance minister position. Lawmakers are expected to endorse a motion to dissolve parliament on Monday, paving the way for early elections.

The interim budget will remain effective throughout coalition discussions and until the new government finalizes its budget for 2025. Finance ministry officials expect the new administration to finalize its budget in the latter half of next year.

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