Overview

• Michael Hüther accuses the government of “tricksereien” and says the intended additionality of new borrowing has been undermined by shifting spending into special funds.
• Capital reports that Finance Minister Lars Klingbeil plans roughly €850 billion in new debt by 2029.
• Budget documents show more than €11 billion cut from the core transport and digital budget while the social budget rises by a similar sum, with rail, roads and broadband moved into the Sondervermögen.
• The Federal Audit Office and leading institutes argue the expenditures are not truly additional, with the auditor seeking a constitutional review of hospital relief from the special fund and warning about broad reclassification of research as “investments.”
• The audit authority projects federal interest costs will double to about €62 billion annually by the next election, and Hüther says debt should finance long-lived projects while defense should be paid from taxes.