Criticism of the billion-dollar budget: Young Union sounds the alarm!

Criticism of the billion-dollar budget: Young Union sounds the alarm!

The black-red government has approved the draft budget for 2025, which provides for comprehensive measures and significant new debt. With a budget volume of 503 billion euros for 2025, which corresponds to an increase of 6.1 percent compared to the previous year, the plans are ambitious and controversial. Net borrowing is set at 81.8 billion euros for 2025, while planned new debt is expected to total 850 billion euros by 2029. These figures were described as “breathtaking” by Johannes Winkel, chairman of the Junge Union, and met with sharp criticism.

Winkel said that the high level of debt can only be justified by massive economic growth. In the debate about the government's plans, he emphasized the need for a comprehensive welfare state reform, which has not been sufficiently addressed in the previous coalition negotiations between the Union and the SPD. The younger generation in particular sees itself disadvantaged by high levels of debt and transfer payments, which increases calls for reforms.

Details of the draft budget

The draft budget was drawn up under the leadership of Finance Minister Lars Klingbeil, who defends the high debt as necessary to make investments to boost economic growth. These investments are expected to amount to 115.7 billion euros for 2025, compared to 74.5 billion euros in 2024. Defense spending is also increasing significantly: 62.4 billion euros are planned in 2025, which means a significant increase in the following years up to 152.8 billion euros in 2029.

Additional loans are planned for the years 2026 to 2029 to achieve these goals:

• 2026: 89,3 Milliarden Euro
• 2027: 87,5 Milliarden Euro
• 2028: 115,7 Milliarden Euro
• 2029: 126,1 Milliarden Euro

Defense spending will rise accordingly from 2.4 percent of gross domestic product (GDP) in 2025 to 3.5 percent in 2029. This increase is made possible by exemptions from the debt brake in order to finance additional spending on defense as well as on civil and civil protection, intelligence services and IT security.

Criticism and outlook

The Junge Union, the independent youth organization of the CDU and CSU with around 90,000 members, is calling for urgent reforms to minimize the threatening burdens on future generations. Chairman Winkel is committed to ensuring that the discourse on the draft not only includes short-term financial planning, but also considers the long-term effects on the socio-political landscape.

Spending on health is falling, while at the same time a moderate increase is planned for work and social services. These developments raise questions about how the government can strike the balance between necessary investments and creating a sustainable financial framework for the future. The critical voices on budget planning will certainly be heard more in the coming months as discussions continue.

Overall, the black-red coalition's budget proposal is a bold venture and a bet on economic growth that will provoke both positive and negative reactions. While some welcome the investment stimulus, others see the dangers of increasing debt. The government is faced with the challenge of making the right decisions to ensure social cohesion and economic stability. Further details on the budget plans can be found in the reports from South German newspaper and ZDF today.