Following the formal approval of the 2026 budget, German Vice-Chancellor and Finance Minister Lars Klingbeil has announced significant austerity measures across all government ministries. Speaking to RTL and /ntv, Klingbeil stated there would be “no room for complacency” once the budget is finalized, emphasizing that all departments would be expected to contribute to fiscal consolidation.
The Finance Minister indicated an expectation that all ministries will undergo a thorough review, with Klingbeil personally engaging with each one to identify potential cost-saving opportunities. He acknowledged that implementing these measures would require considerable effort from the government, particularly given the need to address a deficit exceeding 30 billion euros.
While noting a positive shift in the national mood resulting from recent growth initiatives and investments, Klingbeil cautioned that significant progress remains to be made to achieve the government’s long-term economic goals. He indicated a determination to maintain forward momentum even as the focus shifts towards fiscal restraint.
