The draft budget outlines for 2027, presented by Finance Minister Lars Klingbeil (SPD), have faced sharp criticism from both the CDU-aligned advisory body, Wirtschaftsrat der CDU, and the German Trade Union Confederation (DGB).
According to Wolfgang Steiger, the General Secretary of the CDU-associated body, the plan only appears balanced on paper. Steiger labeled it “a financial policy embarrassment” criticizing that while the draft offers many new revenue ideas, it lacks genuine spending cuts. He contested that the measures would actually close budget gaps, arguing instead that debt repayments would simply be deferred. Steiger noted that spending levels and the net borrowing commitments have both increased significantly. Furthermore, he deemed the proposal disastrous given that it fails to implement substantial, growth-boosting structural reforms-or, in some instances, actively excludes them.
Similar opposition came from the DGB. DGB board member Stefan Körzell stated that the budget proposals constitute “a sweeping attack on the social state” and do not sufficiently contribute to the economic recovery. Körzell highlighted that in an effort to balance the budget, the federal government plans to impose spending cuts on almost every sector, with the exception of defense. He warned that such austerity measures create additional uncertainty in the current crisis, thereby damaging the necessary recovery of purchasing power and consumer demand.