The impending vote on Germany’s 2026 budget is triggering sharp warnings from within the ruling CDU/CSU bloc concerning the nation’s escalating debt levels. CDU parliamentary group deputy Mathias Middelberg has publicly voiced deep concern, stating that the budget proposal relies on borrowing to finance nearly 30% of total spending. This reliance, he argues in an interview with the “Rheinische Post” presents an unsustainable trajectory for the federal government.
Middelberg’s statements reflect a growing internal pressure to curtail borrowing and implement structural reforms. He anticipates that the crucial areas of pensions, healthcare and long-term care will be prioritized for significant overhauls and cost-cutting measures when parliamentary committees convene early next year. While acknowledging the necessity of substantial investment-the 2026 budget allocates over €180 billion in new loans to stimulate the economy-the deputy warns of the long-term consequences of unchecked debt accumulation.
The proposed €524.5 billion budget faces parliamentary approval next week and marks a pivotal moment for Chancellor Scholz’s administration. The reliance on new debt, exceeding €180 billion, raises questions about the government’s commitment to fiscal responsibility and its ability to navigate future economic uncertainties. Critics argue that the current trajectory prioritizes short-term economic gains at the expense of long-term fiscal stability, potentially burdening future generations with mounting debt obligations. The impending debates surrounding structural reforms will undoubtedly be contentious, exposing deep divisions within the coalition and outlining the difficult choices facing policymakers as they attempt to balance economic stimulus with prudent financial management.