The government’s spending is increasing, with a growing number of billion-euro debts being taken on at the European, federal and regional levels. These debts, as is well known, are the taxes of the future. Some German states are now planning to make large expenditures, but not for future innovations or infrastructure projects, but rather to accommodate a growing number of refugees.
North Rhine-Westphalia, led by the Christian Democratic Union, is at the forefront of this trend. The state has already allocated 3.4 billion euros for refugees in its current budget, with a decision to be made by the end of the year on whether this amount will be significantly increased. Berlin, meanwhile, has already made up its mind, with the city’s economy senator, Franziska Giffey of the Social Democratic Party, announcing that the city will definitely take on new debts for refugees, with a possible 1.3 billion euros in new special debts for the 2026/27 budget.
Hesse is planning new debts of 670 million euros for 2025, with a spokesperson stating that the debts cannot be solely attributed to a single expenditure item, such as refugee aid.
The relaxation of the debt brake would make it possible to take on up to a billion euros in new debt. The outcome of the state government’s decision in Schleswig-Holstein on the allocation of possible new funds is still unknown, with the state theoretically able to take on 400 to 500 million euros. A decision has not been made in Lower Saxony and the Saarland, while all other German states have not announced any additional expenditures.