Bundesfinanzminister Lars Klingbeil (SPD) is urging his cabinet colleagues to adopt a stringent savings agenda.
This was revealed in the budget‑planning letter for 2027 that Klingbeil’s responsible Secretary of State sent to the federal ministries on Monday, a move that the “Spiegel” has reported.
Given the budget gaps for 2027 and the following years, the pressure to act remains high, the letter states. All ministries are tasked with contributing to a structural consolidation of the federal budget.
In addition to cuts, “strengthening the revenue side can also make an important contribution” writes Budget Secretary Steffen Meyer. The phrasing hints at two ways to improve federal income: through privatization proceeds – of which there are few opportunities left – or by opening the door to tax increases.
Klingbeil can certainly use every extra euro he can get because the financial shortfalls will be significant in the coming years. For 2027, the shortfall is about €12 billion; for 2028 and 2029, the federal budget reports that each year will also face deficits of more than €60 billion.