Overview
- The Bundesrechnungshof delivered a report to the Bundestag budget committee on Thursday that calls the government's 2027 finances risky and urges a course change.
- The draft 2027 budget foresees €555.4 billion in spending and €118.7 billion in net new borrowing with total new debt above €200 billion once special funds are included.
- Auditors say a €7 billion withdrawal from a so‑called 'reserve' is legally and economically questionable because the reserve is effectively empty and the move counts as additional borrowing.
- The office projects that following the current plan federal debt could double to at least €3 trillion within ten years and warns that rising interest costs and a possible ratings downgrade would reduce money for core public services.
- Parliamentary budget talks start next week and the Finance Ministry rejects charges of concealment while lawmakers, rating agencies and civil groups press for either rapid consolidation, changes to special funds, or new revenue measures.