The CDU's Middelberg flags a potential 43-billion-euro deficit
The 2025 federal budget seems like a daunting challenge for the government. After a meeting between Lindner, Habeck, and Scholz, a proposed solution has been made. However, as per CDU budget expert Mathias Middelberg, this solution might crumble as early as Thursday. This would then lead to the release of the tax forecast.
Middelberg has flagged potential significant financial discrepancies in the upcoming budget. He stated to "New Osnabrücker Zeitung" (NOZ) that the budget gaps are actually larger than initially reported, totalling an alarming 43 billion euros.
Middelberg further noted that the tax forecast due on Thursday is likely to drastically reduce the government's revenue projections, further limiting the flexibility for budget creation. If the coalition government still passes the budget in its current form, Middelberg warned of a potential halt in funding programs in 2025.
Unrealistic savings expectations
Middelberg expressed skepticism towards the federal government's financial calculations. He pointed out that it's not just about the 12 billion euros in 'global underspending' that Lindner aims to reduce to 9-10 billion euros. There are also 4.3 billion euros of under-spending planned in individual ministry budgets. In the Climate and Transformation Fund, a staggering 12 billion euros are missing, according to Middelberg.
Moreover, Middelberg claimed that the expectations for citizens' money are unrealistic. "If the current year's expenditure of 5.5 billion euros is to be realistic, at least 600,000 citizens on benefits would need to find jobs next year," he said, which he deemed highly improbable given the rising unemployment rates.
Middelberg also suggested that the growth initiative would not compensate for the expected growth deficit. In total, he noted, there is a booked expense of around 43 billion euros, despite a lack of actual revenues or under-spending for this amount. This equates to nearly 9% of the total budget.
"Before the summer break, the media estimated the budget deficit to be between 25 to 50 billion euros. It now appears that these estimates were not far off the mark, and the traffic light coalition has only seemingly bridged this gap despite 80 hours of negotiations by the top three men," Middelberg criticized.
The Commission, likely referring to the German parliament's budget commission, will scrutinize the 2025 federal budget thoroughly given the significant financial discrepancies and unrealistic savings expectations highlighted by CDU budget expert Mathias Middelberg. Despite the proposed solution made by Lindner, Habeck, and Scholz, Middelberg's concerns about the budget's sustainability and potential impact on funding programs in 2025 have raised questions within The Commission.
