German government averts crisis with budget agreement for Europe’s largest economy

The German government has agreed on a budget for 2025 and a stimulus package for Europe’s largest economy, ending a monthslong squabble that threatened to upend Chancellor Olaf Scholz’s center-left coalition. German news agency dpa reported that Scholz, a Social Democrat, and leaders of the Free Democrats and Greens agreed on the budget early Friday after marathon talks. The leaders were expected to provide details at a news conference later on Friday. Months of public disagreement over the budget had fueled speculation that the already unpopular government could collapse and prompt a snap parliamentary election in which Germany could follow other European countries by swinging toward the political right.