What will Germany’s new budget mean for the economy?

德国新预算将对经济意味着什么?

World Business Report

2025-09-24

8 分钟
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German Chancellor Friedrich Merz introduces the 2026 budget with €126.7 billion in new investments for infrastructure, transport, schools, and other major projects. Leanna Byrne talks to a business industry leader in Berlin about why they're not happy with the proposals. And a deal has been reached to make a new HIV prevention drug much more affordable in low and middle income countries. You can contact us on WhatsApp or send us a voicenote: +44 330 678 3033.
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  • Germany's Chancellor Warren's businesses face one of their toughest economic tests yet as Berlin tries to push through a new budget.

  • It's World Business Express from the BBC World Service.

  • I'm Liana Byrne.

  • In Italy,

  • the government wants to freeze the retirement age and a landmark deal to slash the price of a life-saving HIV prevention drug.

  • Yes, in Germany, many businesses are not happy.

  • A closely watched survey from the EFO Economic Think Tank shows business sentiment fell in September,

  • analysts had actually expected a rise.

  • It ends an eight-month run of optimistic data and adds to fears Europe's biggest economy is stuck in near stagnation until the end of the year.

  • It's a setback for Chancellor Friedrich Merz,

  • who skipped the UN General Assembly in New York, to focus on getting his budget through Parliament.

  • He's promised urgent action, starting with Germany's industrial backbone.

  • The automotive industry, the steel industry, the chemical industry,

  • these must remain key industries for our economy.

  • And because that's the case, I will be meeting with these industries,

  • with the steel industry and the automotive industry in the next few days.

  • But manufacturers like Frank Proré in Berlin say that focus risks leaving other companies behind.

  • I understand that our government is willing to support those key industries,

  • but what about other industries?

  • Always the same key industries and probably the same big players.