Germany Coalition Agrees to Bridge Budget Gap

Germany's coalition government has reached a significant agreement to address a 17 billion euro ($18.72 billion) budget deficit for 2025, as confirmed by government spokesperson Steffen Hebestreit. The deal aims to reduce the shortfall to 12 billion euros, achieving compliance with constitutional requirements against ordinary budget deficits. Key measures include providing 4.5 billion euros in equity and a 3 billion euro loan to the state-owned Deutsche Bahn, with additional contributions of 300 million euros from energy utility Uniper. This resolution follows months of negotiations, as previous proposals were deemed problematic by the Finance Ministry's advisory board. The agreement reflects a commitment to balance Germany's financial plans amidst ongoing economic challenges.