Overview

• In a ZDF summer interview, the finance minister said he would keep all options on the table, including higher taxes on top earners, to close an estimated €30 billion hole in 2027.
• He announced a major savings drive and directed every ministry to submit proposals to cut core-budget spending.
• CDU and CSU leaders, including Jens Spahn and Thorsten Frei, rejected tax increases, pointed to the coalition agreement, and pressed for cuts in areas such as Bürgergeld, migration spending and development aid.
• SPD parliamentary manager Dirk Wiese backed financing relief for lower and middle incomes by asking very high earners to contribute more.
• Business associations warned higher taxes would deter investment and urged efficiency gains first, as Klingbeil also blamed CSU-backed measures like the expanded Mütterrente and reduced VAT for gastronomy for widening the gap.