- Giffey and Evers call for a reversal in budgetary policy
Economy Senator Franziska Giffey (SPD) and Finance Senator Stefan Evers (CDU) deem a shift in budgetary policy essential - away from ever-increasing expenditures. "Budget discussions in recent years have been characterized by numbers constantly going up. A successfully negotiated budget was merely one that contained more funds and rarely asked about efficiency," Giffey told the German Press Agency.
"It is naturally correct that price increases and wage hikes must also be reflected in a growing budget in the future," explained the SPD politician. "But we must generally ask ourselves: What of what we've done so far is still necessary? How can we become more efficient and digital to save resources? Which measures are no longer absolutely necessary?"
Evers: "We must seriously consolidate the budget"
Evers told the daily newspaper "Welt" that given the necessary savings in Berlin, there was a massive need for decision-making. "We are in the situation that finance ministers have been warning about for years: We must seriously consolidate public budgets."
Berlin's situation is no different from that of the federal government or other federal states. "But we are the first to be affected to this extent. German public spending has exploded since the Corona years. Now we have the task of bringing it back to a normal level," emphasized the finance senator.
Giffey pointed out that the state budget would still be substantial even after planned cuts: "We must accept that budget consolidation is necessary if we want to make responsible politics," said the economy senator. "I see very well that we are facing a major challenge, but comparisons with the drastic cuts at the beginning of the 2000s do not do justice to reality."
The budget volume has doubled
The budget volume was around 20 billion euros in the 2010s. "In 2019, the budget was just under 30 billion euros and increased by a third to 40 billion euros in the wake of the Corona crisis and its management."
Even with the upcoming cuts, the next budget will still be around 37 billion euros, which is significantly higher than before the pandemic, Giffey said. "I think it's important to keep that in mind. With this money, we can do a lot for our city."
Evers wants to turn over every stone in the budget
Evers argues similarly: "The public cannot finance everything for everyone. That's a fact," he said. "But I also want to make it clear: Yes, we must reduce Berlin's public spending to 37 to 38 billion euros in 2026 and 2027. That's still seven to eight billion euros more than in 2019, before the historical spending explosion. And the social state worked back then."
"What I can definitely say and will not tire of repeating: We cannot save five billion euros in a budget without anyone noticing," emphasized Evers. "We will have to make a lot of unpopular decisions in the coming months." To save five billion euros, every stone in the budget must be turned over.
The SPD politician, Giffey, also acknowledged that while price increases and wage hikes necessitate budget adjustments in the future, it's crucial to question the necessity of past expenditures and explore ways to become more efficient and digital to save resources.
Given the rapid increase in public spending since the Corona years, Evers emphasized the need for serious budget consolidation, stating that Berlin, like other levels of government, must bring spending back to a normal level to maintain fiscal responsibility.
