Economist Achim Truger described the federal government’s budget as a “true austerity budget”. Speaking to the economic magazine “Surplus”, he noted that, with the exception of defense expenditures and interest payments, very little of the core budget appears to be growing in real terms, pointing out that even climate protection efforts are facing cuts.
Truger also criticized the government’s tax policies, stating that the scope for reforming income taxes is extremely limited due to “absolutely no room” for costly tax reductions. Furthermore, he objected to the new sugar tax and the escalating taxes on tobacco and alcohol, arguing that these measure disproportionately burden low-income households.
Looking ahead, Truger expressed concern about the impact of the situation in Iran, suggesting that the government might soon be forced to adjust its budget. He warned that if no immediate de-escalation occurs, the government would need to introduce an economic stimulus package and activate the exception clause of the debt brake. Truger concluded by criticizing the federal government for seemingly ignoring the “dramatic financial crisis facing local municipalities”.