Overview

• Finance Minister Lars Klingbeil said in a ZDF interview that he would not rule out tax increases on top earners or the wealthy to help fill an estimated €30 billion gap in the 2027 federal budget.
• The Union’s parliamentary leadership, led by Steffen Bilger, rejected higher levies and pressed for cuts in social spending and migration costs instead.
• Major business associations, including the ZDH, urged the government to first identify ministry savings and cautioned that further tax burdens could weaken Germany’s investment climate.
• SPD leaders such as Dirk Wiese defended seeking counter-financing for agreed relief measures for lower and middle incomes by asking very high earners to contribute fairly.
• All ministries have been ordered to submit savings proposals ahead of extended negotiations on how to close a projected €172 billion financing gap for 2027–29.