In mid-July, the German government submitted a multiannual budget programme to the European Commission. The adjustment period will be seven years, from 2025 to 2031, and should enable it to avoid a situation of excessive public deficit.
In accordance with the revised Stability and Growth Pact for 2024, the Merz government has submitted its public spending growth path, which takes into account Germany’s activation of the Pact’s national opt-out clause to increase military spending.