Germany: Hole 100 billion euros in budget despite loosening of the debt brake – window cuts window

Major problem funding Germany has, despite relaxing the debt brake for defense and local states and the 500 billion euro special fund for infrastructure, as shown in exploratory talks. CDU – CSU and the SPD for the formation of a government.

The funding gap exceeds € 100 billion in budget planning for the years 2025 to 2029, according to Handelsblatt from negotiating circles. And this gap does not yet include many of the desired projects of CDU – CSU and SPD, beyond those who can join the defense, states and infrastructure package.

Der Spiegel magazine first mentioned the fiscal gap. According to the report, in a document on the coalition negotiations, the federal finance ministry calculated the deficit for the legislative period at € 110 billion.

During the exploratory talks, Federal Finance Minister Jörg Kukies (SPD) had estimated the gap at 130 to 150 billion euros. The Ministry of Finance’s budget expert has now updated the assessment of the coalition negotiations.

The result is this: the situation has only been slightly relaxed, with a three -digit amount of billions of euros still missing from the budget planning for the legislative period, according to payer experts. The deficit was smaller mainly due to the financial package agreed by the CDU/CSU, the SPD and the Greens.

In addition to a special fund of € 500 billion for investment, it provides for the loosening of the debt brake. In the future, safety and defense costs can be funded by additional loans if they exceed 1% of gross domestic product.

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