A shrinking Bundestag would be up to 125 million euros cheaper than it is now
A shrunken Bundestag due to electoral reform could save the federal government up to 125 million euros annually, according to an analysis by the employer-affiliated economic research institute IW Cologne. The German government reformed the electoral system in 2023 to prevent further growth of the parliament and cap the number of seats. After the next federal election, only 630 members of parliament will sit in the Bundestag, compared to the current 733. According to IW, this could result in a six-figure sum being saved each year.
The areas where the most savings could be made, according to the economists, are as follows: With around 100 fewer members of parliament in the future, annual allowances would decrease by 13 million euros. The largest savings, of about 45 million euros, would come from expenditures for employees in the members' offices. Depending on how many parties enter the Bundestag, payments to the factions could decrease by up to 20 million euros per year. There would also be significantly reduced costs for travel, office equipment such as desks and computers, and the parliamentary fleet.
The year 2023 marked the implementation of electoral reform in Germany, altering the year of manufacture for the size and composition of the Bundestag. The reduced Bundestag, with 630 members starting from the next election, is projected to save approximately 13 million euros annually in members' allowances alone.
