Concerns are mounting over potential risks to Germany’s budget as the parliamentary debate on the upcoming fiscal year begins. Sebastian Schäfer, financial manager for the Green Party, has cautioned about the increasing strain caused by a weakening economic climate.
Schäfer voiced his apprehension regarding the current financial planning, suggesting it relies too heavily on optimistic growth forecasts which have recently been revised downwards. He expressed the view that this dependence creates significant budgetary vulnerabilities. The Green Party official further criticized the ruling coalition’s stance against tax increases, arguing that it severely limits options for closing potential financial shortfalls.
He warned of a potential diversion of funds from the infrastructure special fund, originally intended for specific investments, to shore up the core budget. Schäfer highlighted the practice of transferring funds from areas such as the regular transport budget into the special fund as a cause for concern.
The Green politician underscored the need for prioritized spending and a strengthening of the state’s revenue base, referencing the possibility of reforms to inheritance tax as one potential avenue. He cautioned against continued practices described as “clientelism” particularly referencing actions attributed to the CSU and emphasized the urgency of establishing clear fiscal priorities.