Thorsten Frei, the CDU parliamentary group leader, has expressed doubts regarding the long-term budget conception presented by Federal Minister of Finance Lars Klingbeil (SPD). Speaking to the Redaktionnetzwerk Deutschland, Frei stated that the financial plan for the next four years is “not carved in stone.” He added that the legislature will have to assess and decide on these issues within the specific budget laws based on the situation at that time.
Citing former Finance Minister Wolfgang Schäuble, Frei emphasized the necessity of drastically reducing government borrowing in the long run. He pointed out that the current financial planning projections show heavily increasing interest expenses related to national debt, rising from around 41.9 billion euros in 2027 to approximately 55.2 billion euros in 2028, 68.1 billion euros in 2029, and 80.7 billion euros in 2030.
Furthermore, Frei indicated that citizens should not expect a complete compensation for the impact of cold progression (the erosion of purchasing power due to inflation and tax increases). He advised waiting for the report on the development of tax progression, which is scheduled for release in the autumn, stating that only then will they have clear, verifiable data. While the CDU deputy acknowledged the government’s desire to completely relieve taxpayers of this progression effect, he added the caveat that “we must also be able to afford it.” Despite this, there is discontent within the CDU parliamentary group because Klingbeil’s plans do not include any compensation for cold progression, meaning that salary increases earned through inflation and rising tax rates would effectively be negated.
