Following the parliamentary approval of the 2026 budget, German Vice-Chancellor and Finance Minister Lars Klingbeil has signaled a period of significant austerity measures across all government ministries. Addressing RTL and /ntv, Klingbeil emphasized that the budget’s passage would be followed by a concerted effort to reduce spending.
The Finance Minister stated that all ministries will be required to identify and implement cost-saving initiatives. He indicated a direct engagement with each ministry, assigning specific targets for reduction. Klingbeil acknowledged the substantial effort and potential difficulty involved in achieving these goals, citing the necessity to address a budget shortfall exceeding 30 billion euros.
While acknowledging a positive shift in the national mood attributable to recent growth initiatives and investments, Klingbeil cautioned that substantial progress remains to be made toward broader economic objectives. He conveyed a sense of ongoing challenges and the need for continued, potentially difficult, adjustments within government spending.