Thuringia plans to borrow over 1 billion euros - a risky bet!

Thuringia plans to borrow over 1 billion euros - a risky bet!

The Erfurt Chamber of Commerce and Industry (IHK) is concerned about the Thuringian state government's debt plans, which are intended to promote growth and infrastructure. As part of the 2026/27 double budget, the country plans to take on over one billion euros in new debt, with the chief executive of the IHK, Cornelia Haase-Lerch, emphasizing the risks of these measures. Loud thueringen.de Around 600 million euros in new debt are planned for 2026 and around 500 million euros for 2027.

The IHK calls for a solid financial policy and clear priorities for investments. Thuringia is already struggling with budget problems resulting, among other things, from high debt and personnel expenses. Haase-Lerch points out that urgently needed investments in infrastructure, digitalization, education and securing skilled workers are being pushed into the background, while at the same time there is a risk that hidden debts will undermine trust in the budget.

Investment program and financial responsibility

The state of Thuringia plans to implement an investment program for municipalities worth one billion euros by 2029. This program is financed by the Thuringian Development Bank, which is intended to provide 250 million euros in loans to the municipalities every year. The state has also decided to cover the interest and repayments on these municipal loans, which would cost 71 million euros annually over a period of 20 years.

Finance Minister Katja Wolf underlines the importance of investments in order to get out of the current phase of stagnation. In order to make this borrowing easier, the federal government has made changes to the debt brake that allow the federal states to take out more loans. This should also help Thuringia to achieve balanced budgets without new debts in the medium term, by 2029, according to information from stern.de emerges.

Risks and discussion about financing models

The discussion about alternative financing models for public building projects is also being initiated. The IHK warned that the planned shift of the investment burden into future financial years by the Thuringian Development Bank entails considerable risks. It is to be expected that municipalities can decide for themselves in which areas they invest, but they must prove that the funds are not used for other purposes.

Overall, the situation in Thuringia remains tense, not least due to concerns about the future budget and the need to maintain financial discipline in the public trust. The ongoing discussions about debt policy will certainly remain a central issue in the coming years.