In a significant shift from years of fiscal restraint, the German government has approved its 2025 budget, marking a new era of increased public spending amid economic pressures. The budget, passed on September 18, 2025, includes substantial allocations for defense, infrastructure, and social welfare, reflecting a departure from the 'black zero' policy of balanced budgets. This move comes as Chancellor Olaf Scholz's coalition seeks to stimulate growth while navigating geopolitical tensions and domestic challenges.

The US Congress is confronting a potential government shutdown due to budget disputes as of September 4, 2025. Lawmakers are in tense negotiations to avoid disruption. This threat emerges amid broader fiscal debates.