German budget deal to see further spending on child welfare, daycare

The German coalition's preliminary deal on the 2025 national budget includes significant increases in spending on children's welfare, government sources told dpa.

The emergency child allowance for families in need will rise by €5 ($5.40) in 2025, while the government plans to invest €2 billion in improving the quality of daycare centres over the next two years and maintain support for voluntary childcare services.

Government sources said Family Minister Lisa Paus and Vice Chancellor Robert Habeck of the Greens were satisfied with the outcome, which protects spending on child welfare despite savings targets announced by Finance Minister Christian Lindner of the pro-business Free Democratic Party (FDP).

Lindner, Habeck and German Chancellor Olaf Scholz of the Social Democrats (SPD) on Friday reached a preliminary deal on the 2025 national budget and a financial plan to encourage growth in Germany after weeks of difficult negotiations.