Concerns are mounting over potential fiscal risks stemming from a weaker economic outlook as the German Bundestag prepares for its budget week. Sebastian Schäfer, financial manager for the Green Party, cautioned that current budgetary planning relies heavily on optimistic growth projections, which have recently been revised downwards.
Schäfer, in remarks to the “Rheinische Post” expressed reservations regarding the budgetary strategy, noting that the reliance on continued economic expansion introduces a significant degree of risk. He also criticized the refusal by the conservative bloc to consider tax increases as an impediment to addressing potential shortfalls.
The Green Party official warned of a potential shift in the purpose of the special asset fund for infrastructure, with investments intended for regular transportation budgets potentially being redirected to bolster the core budget. He argued that continued allocation of resources based on political considerations, particularly citing practices associated with the CSU, poses a danger and necessitates a focus on clearly defined priorities alongside a strengthening of the government’s revenue base. He suggested that reforms to inheritance tax should be considered as part of this broader strategy.
