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Klingbeil calls for austerity: 500 billion for modern infrastructure!
On May 26, 2025, Federal Finance Minister Klingbeil called for savings and investments for a 500 billion euro special fund.
Klingbeil calls for austerity: 500 billion for modern infrastructure!
Federal Finance Minister Lars Klingbeil made an urgent appeal to the ministries on Sunday evening on ARD to make savings when preparing the 2025 budget. At the same time, he calls for additional investments to modernize the country. The aim is to achieve noticeable changes for citizens with a special fund of 500 billion euros. Klingbeil emphasizes the responsibility for budget consolidation and emphasizes that savings should be made particularly in personnel in the federal administration and in benefits in kind.
The black-red coalition has set up a special fund to create the necessary financial scope for investments. The draft budget for 2025 is scheduled to be approved by the cabinet on June 25th. Klingbeil is optimistic that the austerity appeal will be successful, even if previous disputes over the budget and the debt brake led to the collapse of the previous traffic light government.
Ambitious timetables and reforms
The new coalition of the Union and the SPD has changed the Basic Law to create the opportunity for higher investments. In this context, it was also decided to relax the debt brake for defense spending. Despite current challenges, such as a recent tax estimate predicting a €33.3 billion decline in revenue by 2029, Klingbeil remains confident. “I think many people in Germany find it difficult to recognize the value for public finances,” he said in this context.
An initial discussion of the draft budget in the Bundestag is planned before the summer break. The final vote is scheduled to take place in September 2025. This represents ambitious planning, especially since no budget has been approved for the current year, which leads to the formation of a provisional budget. The budget for 2026 should also be determined by the end of 2025.
The current situation not only requires clear austerity measures, but also reforms and well-calculated budget planning. Klingbeil calls on all ministries to approach budget planning responsibly and sustainably. This is essential for Germany's economic stability in the future, as well Market screener and daily news report.