🔶 Debts set records; Warning against a worsening of the German budget crisis in 2028.
Despite the relative improvement in the economic outlook, Germany is facing increasing pressure on the government's financial resources. At the same time as the draft of the federal budget for 2027 was completed, a number of prominent economists warned that the continuation of the current policy is not possible in the long term and the budget situation may worsen from 2028.
"This budget policy cannot be used in the long term," said Clemens Post, head of the Institute for Economic Research in Munich. He demanded from the governing coalition of the Christian-Democratic and Social-Democratic parties, for the 2028 budget, to identify priority expenditures, including defense and infrastructure, because, according to Post, "other expenditures must be kept constant or reduced if possible."
He warned that unless the government is prepared to reduce or stop low-priority spending, it will have to raise taxes to cover its spending. These concerns are raised in a situation where the Budget Committee of the Federal Parliament (Bundestag) approved the draft budget for 2027 after almost 16 hours of negotiations with unprecedented expenses and a level of borrowing that was exceeded only during the Corona epidemic.