Overview

• Official projections reported by ZDFheute show federal financing gaps widening to €34 billion in 2027, €64 billion in 2028 and €74 billion in 2029, with criticism that earmarked special funds and new debt room are being used to cover unrelated holes despite legal limits.
• Ifo researchers propose merging Bürgergeld, Wohngeld and Kinderzuschlag with tighter income-retention rules, estimating about €4.5 billion in annual savings and higher labor supply, short of the roughly €5 billion cuts demanded by conservatives.
• In the Bundestag’s general debate, Merz faced attacks over vague reform delivery and the use of special funds, while he pledged near-term decisions on competitiveness and appointed ex‑Commerzbank CEO Martin Blessing to lure investment.
• Business sentiment weakened again as the Ifo climate index fell 1.2 points to 87.7 in September, and new data underscored regional divergence with several major states contracting while others, including Bremen and Berlin, grew.
• EU finance ministers agreed that a possible digital euro would face Council discussion before any ECB launch decision and that proposed holding limits would need ministerial approval; separately, the Deutsche Rentenversicherung said pension payments will continue on time despite new PSD3 bank checks.