Hesse in crisis: 7 billion euro deficit threatens the future!

Hesse in crisis: 7 billion euro deficit threatens the future!

Hesse is facing significant financial challenges. The 2024 annual report reports a deficit of around seven billion euros. This alarming situation is primarily due to falling tax revenues and rising personnel costs. Finance Minister Lorz (CDU) describes the budget situation as extremely tense and emphasizes that the end of the line has been reached - more staff cannot be afforded.

The annual report presents the assets, earnings and financial situation of the state of Hesse according to commercial criteria. This also includes future financial obligations and hidden debts in secondary households that are viewed as problematic. The obligations for future civil servant pensions are high and the overall situation gives cause for concern.

Fiscal consolidation strategy

Finance Minister Lorz is planning a budget course under the motto “Consolidate consciously, invest in a targeted manner”. Despite the necessary austerity measures, targeted investments should be made in education and security in order to support the country's future development. The focus on education is also evident in the past provision of teachers and police officers to meet current needs.

Lorz also emphasizes the need to advance digitalization in order to increase efficiency and simplify administrative procedures. This is seen as an important step to stabilize the budget situation in the long term and put government finances on a better course.

It remains to be seen how Hesse will overcome the challenges. However, the contents of the annual report already provide a clear look at the financial difficulties that the country is currently facing. For example, assets such as real estate and financial investments are listed to provide a comprehensive picture of the economic situation.

Overall, the situation is serious and requires smart decisions to secure the necessary funds for future investments. Finance Minister Lorz and the state government are now faced with the task of taking appropriate measures to improve the financial conditions.

Received this information hessenschau.de and ffh.de.