On Tuesday 16 September, the European Commission proposed to the Council of the European Union that it validate Germany’s trajectory for increasing net primary expenditure, as set out in its seven-year multiannual budget programme (2025-2031) submitted in July (see EUROPE 13690/17).
According to this trajectory, growth in German net primary expenditure will not exceed 4.4% in 2025, 4.5% in 2026, 2.3% in 2027, 1.7% in 2028 and 1.6% in 2029. Without Berlin’s activation of the override clause in the Stability and Growth Pact, this trajectory would be as follows: 3.1% in 2025, 3.0% in 2026, 2.7% in 2027, 2.1% in 2028 and 2.0% in 2029.
According to the Commission’s proposed recommendation, the German public deficit will exceed the threshold of 3% of GDP between 2025 and 2027. It should respect the following trajectory: -3.3% of GDP in 2025, -3.8% in 2026, -3.2% in 2027, -2.5% in 2028, -1.8% in 2029, -1.4% in 2030 and -1.1% in 2031.
Activation of the Pact's national opt-out clause authorises Germany to increase its annual military spending by up to 1.5% of national GDP.
See the proposed recommendation: https://aeur.eu/f/igo
See the multiannual budget programme: https://aeur.eu/f/igp (Original version in French by Mathieu Bion)