The German Finance Minister Lars Klingbeil, asked the ministries to prepare significant savings plans to fill a hole of more than 30 billion euros in the 2027 budget, according to a letter consulted by Reuters, on Friday, August 22. The German government approved in July a 2026 budget project marked by record investments and a triplication of the use of last year’s loans, in order of strength to the fortress and a defense of 2026.
Lars Klingbeil warned that budgetary pressures would increase from 2027 and requested a “complete examination of tasks and expenses.”
“Establish clear priorities”
The public finance sanitation strategy of the German government is based so much on a stimulation of economic activity due to public investments and incentive measures in favor of private capital, as well as on structural expenses reductions. Lars Klingbeil proposed to achieve, in the 2027 budget, the savings that represent at least 1% of the federal expenditure.
The Ministry of Finance will bring together the Secretaries of State in early September to discuss the measures that will be taken for the 2027 budget and the financial plan for 2030.
Unpublished debt to get out of the recession
The German government presented its budget trajectory for five years at the end of June, breaking with the dogma of rigor to try to relaunch its economy and rearmonary. This program, which will be presented to Parliament after the summer, is betting on an unprecedented debt to release the first economy in the euro zone of the recession and improve its infrastructure.
The figures announced Give the Dizzy: the Ministry of Finance establishes that the entire legislature contracts about 847 billion euros in debts, divided between the ordinary budget: 500 billion new debts until 2029, and special funds dedicated to infrastructure and the army. By 2025, loans will amount to around 143 billion euros, including 81.8 billion in the ordinary budget (compared to 33.3 billion last year). By 2026, the government forecasts 172.7 billion euros in loans.
Source: BFM TV
