Leading fiscal policymakers from the Union urged the federal government to adopt a strict cut‑and‑reform agenda amid the weakening economy.
“The long‑promised deep reforms now have to be implemented” said Matthias Middelberg, deputy chair of the Union parliamentary group (CDU), to the “Rheinische Post” (Wednesday issue). In the 2027 federal budget – and especially in subsequent years – multi‑billion‑Euro shortfalls will appear. “The decisive contribution must now be made through savings. We are still spending too much on development programmes and subsidies, and our social benefits also need to be scrutinised with great precision. There is still room to cut” Middelberg added. “Additional revenue could, for instance, come from a higher tobacco tax”.
Christian Haase, Union’s fiscal spokesperson (CDU), told the same newspaper that the government must maintain a tight sparing and reform course if it does not wish to endanger state capacity. “Therefore it is correct that Finance Minister Lars Klingbeil (SPD) has imposed a ‘savings quota’ on every ministry”.
“That alone will not be sufficient to plug the billion‑Euro budget holes starting in 2027” Haase said. With global crises threatening economic growth, the government needs to act decisively to safeguard prosperity. “I expect the government to present constructive proposals to Parliament by the end of April, outlining an action perspective that lasts until the end of the legislative period” Haase added. Economic research institutes have halved their growth forecast for this year to 0.6 percent because of the Iran war.
