Germany’s finance minister urges cabinet colleagues to make savings #NewsGerman

German Finance Minister Lars Klingbeil is calling on all government departments to make savings when drawing up their budgets for the current year, even in light of plans for massive government spending on infrastructure.

“As finance minister, I will insist that every ministry comes up with savings,” Klingbeil told the Redaktionsnetzwerk Deutschland (RND) on Monday.

“We cannot sit back and relax just because we have the €500 billion special fund for infrastructure, and defence spending is now exempt from the debt brake.”

Klingbeil, from the centre-left SPD, wants to get his draft budget through the cabinet on June 25, so that the Bundestag can debate it for the first time before the summer recess. It is scheduled to be passed in September.

“Ultimately, I want to present a budget that has been thoroughly calculated and is consistent,” Klingbeil said.

Although the amendment to the Basic Law on the debt brake has given the coalition leeway to invest in the country’s future, “this is forward-looking, aimed at making Germany strong, not at plugging holes in the budget.”

Shortly before the conservative-led coalition under Chancellor Fridrich Merz was formed, lawmakers in the previous parliament voted to set up a special fund of up to €500 billion ($563 billion) to renew Germany’s dilapidated infrastructure.

At the same time, the old parliament agreed to a relaxation of the debt brake for defence spending, as Europe ramps up its rearmament plans.

Nevertheless, concrete savings measures were agreed in the coalition agreement, which are to be reflected in the draft budgets. Government circles suggest 0.5% of jobs in the federal administration are to be cut in the current year, with a further 2% reduction planned for 2026.