Before the draft figures for the 2027 federal budget are presented, Mathias Middelberg, a Vice Chairman of the CDU parliamentary group, stressed the need for “greater ambition in savings” and put forward several concrete proposals. Middelberg noted that while the 2027 budget faces a shortfall of over 20 billion euros, future years are projected to have deficits exceeding 60 billion euros. He warned that the forthcoming tax reform cannot be financed solely through internal budget reallocations, stressing that genuine and honest savings measures are mandatory.
Addressing the federal spending structure, he proposed that the mandated 8 per cent staff reduction-agreed upon in the coalition agreement-must be implemented not only within the federal ministries but across every institution funded by the federal government. Middelberg argued that if the central administration can achieve the required 8 per cent staff reduction during this legislative period, then all institutions receiving federal funding must do the same. He demanded that the scope of this funding be massively cut, arguing that many supported activities and goals are now obsolete or fall outside the federal jurisdiction, and that currently, no one is willing to abolish these structures.
Beyond personnel costs, Middelberg also identified considerable potential for cuts in subsidies. He highlighted the dramatic increase in these subsidies over the past seven years, which rose from 8.3 billion euros to 59.5 billion euros-a growth of more than 600 per cent. While acknowledging the general importance of these financial supports-which range from climate protection and decarbonizing infrastructure to hydrogen technology and social housing-Middelberg questioned their efficiency. He pointed out that there is insufficient scrutiny regarding whether these funds actually achieve their goals, or if those goals could be met just as efficiently, or perhaps even more so, with less funding. According to the CDU politician, a gradual reduction in support rates and overall volumes would not constitute a loss but would rather promote competition among the sector for better, more efficient solutions.
The core figures for the 2027 federal budget are scheduled to be decided by the cabinet, representing the SPD, on Wednesday. Following the cabinet approval, the budget plan will undergo parliamentary consultation, with the Bundestag making the final decision on expenditures for 2027 in November.