Ahead of the presentation of the core figures for the 2027 federal budget, CDU Vice Chair Mathias Middelberg has issued a clear call for “more ambition in savings” offering several concrete proposals to address the anticipated deficits. He points out that in addition to the deficit of over 20 billion euros for 2027, budget gaps exceeding 60 billion euros are projected for the following years. According to Middelberg, genuine austerity efforts are necessary, as merely financing the budget through account reallocations will not suffice, even with the upcoming tax reform.
Middelberg suggests that spending reductions must extend far beyond the 8 percent personnel cuts already agreed upon in the coalition treaty for federal ministries. He insists that if the central federal administration must make these reductions, the same must be applied to all institutions and centers that the government funds. He argues that the federal government finances a “huge number of institutes, foundations, and centers for every kind of topic”. Middelberg contends that some of these purposes are outdated or fall outside federal jurisdiction, and that the funding scope must be drastically reduced now, as no one is willing to dissolve such organizations.
Furthermore, Middelberg sees considerable potential for cuts in subsidies. He highlighted the dramatic rise in this sector, noting that financial assistance escalated from 8.3 billion euros to 59.5 billion euros over the past seven years-an increase of more than 600 percent. These financial aids cover diverse measures, such as climate protection, decarbonization of transport and buildings, and social housing. While acknowledging that most of these aims are fundamentally sensible, Middelberg questioned whether their effectiveness and goal achievement are adequately reviewed, particularly whether the targets could be reached just as efficiently, or even more efficiently, with less funding. He believes that a gradual reduction in funding rates and volumes would not be a loss, but rather would stimulate “competition for more efficient solutions”.
The Federal Finance Minister, Lars Klingbeil (SPD), is scheduled to decide the main figures for the 2027 budget in the cabinet on Wednesday, after which the plan will proceed to parliamentary consultation. The Bundestag will make the final decision regarding the 2027 expenditures in November.
