A recent analysis of the 2026 federal budget by the German Federal Audit Court has sharply criticized the budgetary policies of the governing coalition, comprised of the Social Democratic Party (SPD) and the Union parties. The report, obtained by Politico, raises concerns about the long-term financial stability of the nation and calls for a fundamental shift in spending priorities.
The Audit Court’s assessment emphasizes the critical need for the federal government to address what it describes as a significant expenditure problem, both immediately and structurally. The report asserts that the government must return to a position where core state functions are financed through regular revenue streams, rather than relying on borrowing.
It cautions against the assumption that future economic growth will automatically resolve the current budgetary challenges, instead advocating for sustainable spending cuts and a renewed focus on constitutionally mandated core tasks. The Court urges a critical evaluation of subsidies and a strategic prioritization of investments over current consumption-based spending.
The audit highlights a concerning trend: projections indicate that nearly one in three euros spent in 2026 will be financed through debt, a situation the Court deems distant from sound financial management. The report signals a call for greater fiscal discipline and a reassessment of the government’s approach to budgetary planning.