Overview
- Bavaria said on Tuesday it will hold a debt-free line for 2027 while raising total spending by 3.3 percent to about €85 billion and using roughly €700 million from its reserves to close gaps.
- The Bavarian plan counts on about €2 billion from the federal special investment fund to finance major projects such as research campuses and hospital upgrades.
- Bavaria expects personnel costs to rise by more than €1 billion to €33.8 billion, maintains a hiring freeze for 2026, and intends to create and fill roughly 1,900 new school posts in 2027.
- Schleswig-Holstein’s cabinet approved a formal Nachschiebeliste that accepts an estimated financing gap near €800 million, will use €109 million of reserves and plans net borrowing of about €684 million with a Landtag vote due in December.
- Both states are protecting targeted municipal transfers and priority investments now but warn that one-off measures and reserve draws leave structural pressures that could translate into service cuts, hiring limits or deeper savings in the 2028/29 budgets.