A shrinking Bundestag would save millions
The number of Bundestag members has exploded in recent years; and so have the costs. The electoral reform of the traffic light coalition aims to change that. And it would, according to a study. This would relieve the federal budget by a three-digit million amount - every year.
A shrinking Bundestag due to the electoral reform would save the federal government up to 125 million euros per year, according to an analysis by the employer-affiliated economic research institute IW Cologne.
The federal 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 will sit in the Bundestag, down from the current 733. According to IW, this could save a three-digit million amount per year.
The areas where the most savings could be made, according to the economists, are: With around 100 fewer members in the parliament, annual expenses for allowances would decrease by 13 million euros. The largest savings, around 45 million euros, would be in expenses for employing staff in the members' offices. Depending on the number of parties entering the Bundestag, payments to factions could decrease by up to 20 million euros per year. Costs for travel, office equipment such as desks and computers, and the parliament's fleet would also decrease significantly.
However, other posts in the Bundestag's budget would remain unchanged. It is unlikely that the federal government would sell off larger parts of its real estate, says IW expert Björn Kauder.
The Federal Constitutional Court has recently reviewed several complaints against the new electoral law and declared it largely constitutional. Only the five percent threshold without a so-called basic mandate clause violates the Basic Law. According to this rule, the threshold for the nationwide share of second votes for parties that have won at least three direct mandates is waived. The court has decided that the basic mandate clause abolished by the reform will remain in effect until the Bundestag creates a new regulation. If nothing changes by autumn 2025, the election will take place under these conditions.
The electoral reform, as proposed by the traffic light coalition, will see the Institute of German Economics Cologne estimating annual savings of 100 million euros for the federal budget, primarily due to reduced staffing costs and allowances in MPs' offices. The reform, implemented by the federal government in 2023, aims to cap the number of Bundestag members at 630, a significant decrease from the current 733, with the Institute of German Economics Cologne suggesting this could lead to savings.
