Skip next section German finance minister ‘not ruling out’ tax increases
08/18/2025August 18, 2025
German finance minister ‘not ruling out’ tax increases
Facing a looming gap in the 2027 , German Finance Minister Lars Klingbeil is not ruling out tax increases.
A comprehensive package is needed to fill a €30 billion gap, the Social Democrat leader and vice chancellor told public broadcaster ZDF on Monday.
“I’m not ruling out any options,” Klingbeil said when asked about possible tax increases.
Germany’s center-left Social Democrats (SPD) are part of a governing coalition with the conservative Christian Democratic Union and the CDU’s Bavarian sister party, the Christian Social Union, which has generally pushed back against raising taxes. Klingbeil said the SPD has always maintained that people with and high incomes .
“I am not abandoning this fundamental conviction by joining a coalition. And that is why we will discuss all issues in the coalition: Where can we cut subsidies? Where can we reform these social security systems? Where can savings be made in the ministries?” Klingbeil said.
The finance minister said an “enormous effort” is being undertaken to find savings in the budget, and that he to submit savings proposals.
“This can only be achieved as a team effort,” he said.
In the medium-term financial plan that ends in 2029, the planned new debt comes in at €851 billion. Between 2027 and 2029, there will still be a financing gap of around €172 billion.
https://p.dw.com/p/4z8xm
Skip next section Germany sees uptick in welfare spending
08/18/2025August 18, 2025
Germany sees uptick in welfare spending
In 2024, social welfare agencies in spent a net total of €20.2 billion ($23.6 billion) on benefits, amounting to a year-on-year increase of nearly 15%, according to data released Monday by the Federal Statistical Office (Destatis).
According to a Destatis press release, spending rose significantly in all areas of covered by the data, which include all benefits for people who are unable to work and earn their own living.
More than 56% of social welfare spending was attributable to basic income support for the elderly and people with reduced earning capacity, according to the Federal Ministry of Labor and Social Affairs.
These benefits, which are financed entirely from federal reimbursements to the states, amounted to €11.4 billion in 2024. This represents an increase of 13.3% over the previous year.
Not included in the data were expenditures related to “Bürgergeld” or the citizen’s income scheme, which is support intended for job seekers that is covered under another welfare category.
The uptick in welfare spending comes as Germany faces massive holes in the federal budget. This comes along with .
Germany’s governing coalition of the conservative CDU/CSU and the SPD has begun to look at to combat rising costs. Concrete proposals are currently being drafted.
https://p.dw.com/p/4z8Oq
Skip next section Welcome to our coverage08/18/2025August 18, 2025
Welcome to our coverage
Guten Tag from the Bonn online news team, and welcome to our coverage of Germany to kick off your week.
Today, we are reporting on German welfare spending, along with comments from the finance minister that he is open to raising taxes on high earners.
Meanwhile, the foreign minister has criticized China’s support for Russia while on a visit to Japan.
https://p.dw.com/p/4z8Nv
The post Germany updates: Welfare spending increases in 2024 appeared first on Deutsche Welle.
