German Finance Minister Lars Klingbeil (SPD) has urged his cabinet colleagues to follow a strict austerity path.
This message is clear from the 2027 budget outline letter that the finance ministry’s responsible state secretary sent to all federal ministries on Monday, a development reported by “Der Spiegel”.
The letter stresses that, given the fiscal gaps projected for 2027 and the years that follow, pressure to act remains high. It calls on every ministry to contribute to a “structural consolidation” of the federal budget.
In the same document, Budget State Secretary Steffen Meyer writes that, alongside savings, “strengthening the revenue side could also make an important contribution”.
The wording conceals two options for boosting federal revenue: proceeds from privatisations-which are limited in scope-or the possibility of introducing tax increases.
Indeed, Klingbeil would welcome every additional euro, because fiscal shortfalls are substantial in the coming years. 2027 is expected to face a deficit of about €12 billion, while 2028 and 2029 each face shortfalls of more than €60 billion, according to the Federal Finance Ministry.
