Overview

• Germany’s federal audit office warns of a roughly €170 billion budget gap through 2029 and sharply rising interest costs, and it has requested constitutional review of plans to reimburse hospitals from the special fund.
• Ifo and the employer‑aligned IW accuse the government of using the debt vehicle for non‑additional spending, with IW chief Michael Hüther calling the approach “trickery” and a “scandal,” citing items such as the Mütterrente.
• Reporting on the 2025 budget shows transport and digital projects moved into the Sondervermögen while the core social budget rose by about €11 billion as regular transport outlays fell by a similar amount.
• CDA leader Dennis Radtke rebukes Chancellor Friedrich Merz’s claim that the social state is no longer affordable as “alarmism” and urges “reforms without the chainsaw.”
• Merz has signaled about €5 billion in Bürgergeld savings, with the government eyeing measures such as tighter housing‑cost rules, while CSU leader Markus Söder presses for deeper cuts and proposes eliminating 10,000 state posts in Bavaria.