Overview

• Finance Minister Lars Klingbeil refused to rule out raising taxes on top earners to close an estimated €30 billion shortfall in the 2027 budget.
• He urged a comprehensive fiscal package that combines higher levies with ministry savings proposals, subsidy cuts and social system reforms.
• Klingbeil blamed CSU-driven measures—such as the expanded Mütterrente, a VAT cut for gastronomy and agrardiesel subsidies—for enlarging the deficit.
• CSU leader Markus Söder has categorically rejected any tax hikes, intensifying tensions within the coalition.
• Klingbeil vowed to remain in the government and called for collegial talks to address a wider €172 billion financing gap out to 2029.