Lars Klingbeil: Reshaping Germany's future in the Ministry of Finance!

Lars Klingbeil: Reshaping Germany's future in the Ministry of Finance!

On May 22, 2025, Federal Finance Minister Lars Klingbeil, who has been in office since May 6, presented his ambitious plans for the coming months. He emphasized the need to stimulate the economy, secure jobs and modernize the country. These measures should not only bring short-term success, but also promote sustainable development. The Federal Ministry of Finance (BMF) is also to be converted into an investment ministry, which signals a fundamental realignment of financial policy. Klingbeil emphasized that budget consolidation will continue, while at the same time massive investments in infrastructure and other areas will be initiated.

Klingbeil's most important task is to end the provisional budget management and prepare the 2025 federal budget. A draft of the budget is to be presented to the federal cabinet on June 25th. At the same time, a law for a 500 billion euro special fund for infrastructure projects is being introduced. This is intended not only to provide the necessary framework to drive modernization, but also to ensure that reforms can be implemented more quickly.

Growth strategies and reforms

A central element in the coalition agreement is the planned reforms to promote growth. These include, among other things, faster approval procedures, a reform of Deutsche Bahn and a tax policy that acts as an “investment booster”. A declining depreciation rate of 30% is intended to encourage companies to invest more in their future. These measures are designed to put Germany on a stable growth path and increase the competitiveness of the economy.

In addition, a fundamental reform of the debt brake is being sought in order to secure public finances in the long term. An expert commission is to be set up for this purpose, with the results being incorporated into legal regulations this year. In order to strengthen the population's trust in politics, Klingbeil pointed out that actions ultimately count more than mere announcements.

Current challenges and measures

The federal government is aware of the numerous challenges that lie ahead of it. Chancellery Minister Thorsten Frei (CDU) speaks of a significant need for reform in order to get out of the current stagnation and recession. Alignment with European security standards is just as important as supporting Ukraine in the fight against Russian aggression. It is emphasized that the security of Germany and Europe must also be strengthened through appropriate investments.

With regard to social justice, the government aims to relieve the burden on citizens and companies. Electricity prices should be reduced by reducing the electricity tax to an EU legal minimum and making clear agreements to reduce network fees. At the same time, pressure is being exerted on those receiving public benefit to improve conditions for everyone.

In addition, the government is planning measures to make working hours more flexible and to abolish the Supply Chain Due Diligence Act in order to relieve the burden on the economy and expand the workforce potential. The Minimum Wage Commission is also seeking a decision on raising the minimum wage to 15 euros per hour. There is an argument in fiscal policy that there needs to be a greater focus on retirement provision, and the allegations surrounding the cum/cum tax scandal should be addressed before the end of the year.

Overall, Lars Klingbeil is confident that these measures and reforms will pave a clear path to a more stable and competitive future. The Federal Government remains committed to the trust of the population and is committed to actively shaping the future role of Germany and Europe.

For more information, please visit the reports on bundesfinanzministerium.de and bundestag.de.