German cabinet approves mid-term fiscal plan for Brussels

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)