Published by Global Banking & Finance Review®
Posted on May 27, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleGermany will invest €110 billion in 2025 to modernize its economy and secure jobs, focusing on infrastructure and defense spending.
By Holger Hansen
BERLIN (Reuters) -Germany will ramp up public investment to 110 billion euros ($125 billion) this year as part of efforts to modernise the economy and put it back on track for growth, Finance Minister Lars Klingbeil said on Tuesday.
"At the same time, we will implement comprehensive structural reforms and continue to strictly consolidate the budget," he said in an emailed statement.
Government investment in 2024 came in at around 75 billion euros ($85 billion).
Germany's new coalition government plans a surge in public spending targeting defence and infrastructure, hoping to close gaps in long-neglected areas of investment while hauling the economy out of a two-year downturn.
"My top priority is to put Germany on a growth path now. This is how we boost the economy and secure jobs," said Klingbeil, who also serves as deputy chancellor.
The 2025 investments will be paid for using Germany's core budget together with a special fund created to modernise ageing infrastructure and another fund financing the transition to a greener economy.
The government is currently preparing a draft of the 2025 budget, which the cabinet is due to approve on June 25.
($1 = 0.8814 euros)
(Reporting by Holger Hansen, writing by Rachel More, editing by Friederike Heine and Thomas Seythal)
Germany will ramp up public investment to 110 billion euros ($125 billion) in 2025.
The investment will target defense and infrastructure, aiming to close gaps in long-neglected areas.
The investments will be financed through Germany's core budget and a special fund for modernizing infrastructure.
The cabinet is due to approve the draft of the 2025 budget on June 25.
The coalition government aims to modernize the economy and put it back on a growth path to boost the economy and secure jobs.
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