Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
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Germany's cabinet approves its mid-term fiscal plan for EU submission, finalizing budgets for 2025 and 2026 after operating on a provisional budget.
BERLIN (Reuters) -The German cabinet approved on Wednesday the country's medium-term fiscal plan that will be submitted to the European Commission, a spokesperson from the finance ministry said.
Each year, EU member states must submit an annual progress report on the implementation of their national medium-term fiscal-structural plan to the Commission to comply with new European fiscal rules.
Doing this was only possible for Germany once the details of the 2025 and 2026 budget had been finalised.
After former chancellor Olaf Scholz's coalition collapsed in November, the last government ran out of time to pass the 2025 budget. Germany has been operating on a provisional budget since the start of the year.
Germany's cabinet approved at the end of June a draft budget for 2025 and a budget framework for 2026, thus making possible to finalise the mid-term fiscal plan for Brussels.
(Reporting by Maria Martinez and Christian Kraemer, Editing by Madeline Chambers)
The German cabinet approved the country's medium-term fiscal plan that will be submitted to the European Commission.
The approval was delayed because the details of the 2025 and 2026 budget had not been finalized until recently.
The last government ran out of time to pass the 2025 budget after former chancellor Olaf Scholz's coalition collapsed in November.
Germany's cabinet approved a draft budget for 2025 and a budget framework for 2026, which allowed for the finalization of the mid-term fiscal plan.
Each year, EU member states must submit an annual progress report on their national medium-term fiscal-structural plan to comply with new European fiscal rules.
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