German 2027 budget sparks outrage from business and labour leaders
In the debate over Germany's 2027 federal budget, the CDU-affiliated business lobby Wirtschaftsrat der CDU has criticized the key policy outline presented by Finance Minister Lars Klingbeil (SPD). The budget is "only balanced on paper," Wolfgang Steiger, the organization's secretary-general, told newspapers of the Funke Mediengruppe in Thursday's editions.
"Plenty of ideas for new revenue but hardly any savingsâthis isn't a path to consolidation, it's a damning indictment of fiscal policy," Steiger said. Budget gaps remain unaddressed, debt repayment is being deferred, and both spending and net borrowing are rising sharply. Against the backdrop of the government's failure to implement genuine, growth-promoting structural reformsâor, as seen with BĂ€rbel Bas in Bielefeld, outright rejecting themâhe called the plan "disastrous."
The German Trade Union Confederation (DGB) also weighed in with criticism. "The budget framework is a broadside against the welfare state and does far too little to support economic recovery," DGB executive board member Stefan Körzell told the papers.
To balance its books, he argued, the federal government is imposing austerity measures on all areas except defense. "In the current crisis, this only fuels further uncertainty and undermines the much-needed recovery of purchasing power and consumer demand," Körzell said.
