Overview

• CDU and CSU leaders ruled out higher taxes, citing the coalition agreement’s goal of tax relief and urging cuts in areas such as personnel, Bürgergeld, development aid and subsidies.
• Klingbeil reiterated that possible increases for top incomes and wealth remain under consideration, while SPD figures said such steps could finance promised relief for lower and middle earners.
• The finance plan shows roughly €30 billion missing in 2027 and about €172 billion across 2027–2029, with the minister calling for a cross‑government savings drive and reviews of subsidies and social systems.
• Economists and business groups warned that raising taxes could curb investment and growth, with ifo chief Clemens Fuest and industry associations urging spending restraint instead.
• Klingbeil argued measures backed by CSU chief Markus Söder—such as an expanded Mütterrente, the gastronomy VAT cut and agrardiesel subsidies—have widened the gap, as officials signal lengthy budget talks ahead.