- The Government is implementing partial debt forgiveness measures for Unimedizin, utilizing its reserves.
Rhineland-Palatinate's Budget Plans for the Next Two Years Revealed
The Rhineland-Palatinate state will increase its spending in the upcoming year, with the University Medical Center Mainz set to receive partial debt relief amounting to 400 million euros. This relief, mentioned by Finance Minister Doris Ahnen (SPD), will alleviate half of the institution's debt. Also approved by the cabinet in Mainz, the double budget plan includes additional funding for municipalities, with substantial investments planned for 2025.
400 Million Euros for University Medical Center Mainz's Debt Relief
The University Medical Center Mainz will receive significant financial relief, totaling 400 million euros, as part of the state's plans for 2025. This move, explained by Finance Minister Ahnen, will reduce half of the institution's debt. Moreover, the state's funding for research and teaching will be boosted for the hospital. "We aim to give the new board the best possible start," stated Ahnen. By the end of the year, the board is required to devise a strategy to eliminate the deficit within five years.
Communal Financial Equalization Fund (KFA) to Expand Significantly
In the double budget plan, the Communal Financial Equalization Fund (KFA) is forecasted to expand by approximately 349 million euros compared to 2024. For the first time, in 2026, it will surpass the 4 billion euro mark. 200 million euros are set aside for a new funding program, which will support chosen municipalities in their investments. "It will not be a shotgun project," declared Minister President Alexander Schweitzer (SPD). Details on the funding will be disclosed later. The budget for this fund has first been secured. The Ministry of Education will remain the largest budget item amongst the ministries, with a 6.44 billion euro expenditure in 2025, and 6.51 billion euros in 2026.
Strengthening Police and Judiciary
The police force will be boosted further, as the state hopes to exceed the "target number" of 10,000 trained police officers included in 2024. In the judiciary, 200 new positions are anticipated, 36 of which are reserved for judges and public prosecutors. This effort will contribute to combating political crimes and sending an assertive message against hate crimes, said Schweitzer.
Furthermore, 38 positions are to reinforce the new State Office for Fire and Disaster Protection. 22 million euros, sequentially, will be allocated for this office for both years of the double budget. The organization aims to centralize expertise to support municipalities in population protection at various levels.
Maintaining Reception Facility Capacity
The Ministry of Family, Women, Culture, and Integration, led by Katharina Binz (Greens), will invest more than 201 million euros extra in the coming year and around 770 million euros in total. For migration and integration, around 224 million euros are planned for 2026. The state's reception facilities expansion, caused by the war in Ukraine, will be preserved. Municipalities will get additional support in accommodating refugees.
Infrastructure development, including streets, bridges, and bike paths, will receive 500 million euros, announced Minister of Economics Daniela Schmitt (FDP), a record investment. Around 184 million euros will fund the municipal transportation network. Notable projects include the elevated road modernization in Ludwigshafen and the new construction of the Pfaffendorfer Bridge in Koblenz.
Finance Minister Ahnen regarded the draft double budget as a two-year period of economic instability. Projections suggested that a "normal economic situation" might take time to re-establish.
Revenue is estimated at 19.17 billion euros in 2025 and 19.85 billion euros in 2026 - slightly more than the 18.02 billion euros estimated for this year.
Expenditure is projected to rise significantly from 2024 to 2025
Expenditure initially rises substantially, from the projected 22.73 billion euros in 2025, to 25.16 billion euros in 2025 - a nearly 10% increase, and 25.45 billion euros in 2026. The significant boost in 2025 can be partially explained by the University Medical Center Mainz's debt relief and the new municipalities' funding program. According to Ahnen, personnel costs account for approximately 37% of the state's expenditure.
The state plans to create 1,508 additional positions in 2025 and 404 in 2026, with over 948 and 225 of these going to schools.
In 2025, a financing deficit of around 934 million euros is projected, excluding pending debt repayment obligations. In 2026, a net loan intake of 363.0 million euros is scheduled.
The double budget draft will now be considered by the state parliament, with the final decision resting with the parliament as the budget legislator.
Criticism from the opposition. (This paragraph remains unchanged.)
The opposition has already voiced their disapproval. The money man for the CDU group, Christof Reichert, points out persisting inadequate financial resources for municipalities, inadequate investment in education, and a substantial backlog in infrastructure maintenance. He also mentioned the lack of emphasis on boosting hospital investments. On the other hand, Iris Nieland, representing the budget policy of the AfD group, declared that the 2025 budget, heavily relying on reserves, and the anticipated 2026 debt, indicate that the traffic light coalition is anything but serious about fiscal policy.
Reserve Funds Utilized for Debt Relief
A significant portion of the reserve funds has been allocated for debt relief, specifically 400 million euros towards relieving the University Medical Center Mainz's debt.
Municipalities to Benefit from Reserve Funds
A new funding program is set to be introduced, with 200 million euros reserved from the reserve funds, to support selected municipalities in their investments.
