Germany's coalition government has reached a final agreement on the 2025 budget following weeks of internal disputes, which have tarnished the administration's image. Led by Chancellor Olaf Scholz, the three-party alliance of Social Democrats, Greens, and Free Democrats has struggled with fiscal discipline, particularly under Finance Minister Christian Lindner's push for budgetary prudence. The coalition has agreed to increase spending on defense and housing while adhering to strict borrowing rules, especially after the highest court invalidated a previous scheme reallocating COVID-19 funds. Meanwhile, in Israel, Prime Minister Netanyahu and Finance Minister Smotrich have committed to passing the 2025 state budget by the end of the year, aiming to support the ongoing war efforts amid rising budget deficits. Smotrich faces pressure to maintain fiscal responsibility due to credit rating cuts as military expenditures continue to rise significantly. Both nations are grappling with complex budgetary challenges amidst political pressures and public dissatisfaction.