The German government no longer expects the cabinet to reach an agreement on the 2025 draft budget by a July 3 deadline, government sources told Reuters on Tuesday.

July 17 is now being considered as the new date, which would mean that all deadlines for submitting the draft budget to the Bundestag lower house of parliament can still be met.

A finance ministry spokesperson said consultations on the draft budget were ongoing.

"The aim is still to reach a political agreement and a cabinet decision in July," added the spokesperson. (Reporting by Holger Hansen, Writing by Miranda Murray, Editing by Madeline Chambers)