News
‘There is no financial space’, says German minister as tax revenues fall
Christian Lindner, German Finance Minister, speaks during the press conference on the results of the fiscal estimate. Soeren Stache/dpa
Germany’s federal, state and local governments can expect €21.9 billion ($23.8 billion) less in tax revenue next year than forecast in the fall.
Fiscal estimators project that the state will raise a total of 995.2 billion euros in 2025, according to the Finance Ministry in Berlin on Thursday.
Finance Minister Christian Lindner said: “What I repeat almost like a mantra, taking into account exorbitant political desires, is now available in black and white: there is no new financial room for maneuver in the near future.”
In the remaining years of the estimated period until 2028, there will also be a significant drop in revenue compared to the last estimate – totaling 80.7 billion euros.
According to the ministry, tax revenues will be, on average, around 16 billion euros lower each year, compared to the October 2023 forecast.
Lindner called the current fiscal estimate a “reality check” for the 2025 federal budget: “We must say goodbye to unrealistic desires and move forward with budget consolidation.
The results also show that financial challenges will be greater in the coming years, he said.
“If we don’t take countermeasures now, the trend will get worse, especially for the federal government. We can’t just pile on structural challenges with more and more debt. What we need is obvious: more growth, we need a turnaround economy,” Lindner said.
“Only with strong economic development will we be able to create prosperity and stable public finances”, added the minister.
Christian Lindner, German Finance Minister, speaks during the press conference on the results of the fiscal estimate. Soeren Stache/dpa