Union Leaders Urge Strict Austerity Reforms Amid Weakening Economy

Union Leaders Urge Strict Austerity Reforms Amid Weakening Economy

Leading fiscal policymakers of the CDU/CSU Union have urged the federal government to adopt a strict savings and reform program in light of a weakening economy.
Deputy chair of the Union parliamentary group, Matthias Middelberg (CDU), told the “Rheinische Post” that the long‑promised, deep reforms must now be implemented. He pointed out that the 2027 federal budget-and especially the budgets that follow-will lack large two‑digit‑billion sums. To fill the gap, “significant savings must be achieved now”. Middelberg accused the government of continuing to spend too much on support programmes and subsidies and said that social benefits should be rigorously evaluated for target precision. “We can still cut a lot” he added, and suggested that additional revenue could potentially come from the tobacco tax.

Budget spokesperson for the Union, Christian Haase (CDU), also said that a strict savings and reform trajectory is necessary “if we do not want to risk the state’s capacity to act”. He acknowledged that finance minister Lars Klingbeil (SPD) has imposed a “savings quota” on every ministry. Haase warned that this measure alone will not be sufficient to plug the multibillion‑euro budget holes that will appear from 2027 onward.

Amid worldwide crises, the Union said European economic growth is precarious. “The federal government must now take targeted action to protect our prosperity” Haase emphasized. He expects the government to present constructive proposals to Parliament before the end‑of‑April key‑value decision, outlining a course of action through the end of the legislative period.

Economic research institutes have cut this year’s growth forecast to 0.6 percent, citing the Iran war as a major factor.