Bild has learned that Germany’s budget deficit will increase to more than 30% by 2030.
By 2030, according to the forecast of the Federal Audit Chamber of Germany, the difference between income and expenses will grow to 31.2% – €108 billion
The Federal Audit Chamber of Germany estimated that by 2030 the German government will lack a total of €108 billion, Bild reports, citing the conclusion of the department.
According to the accounting chamber, in 2027, the difference between revenues and budget expenditures is expected to increase by 2.7% to 28.9%. Thus, out of every €100 of government spending, €28.9 will be financed by new borrowing. At the same time, according to the forecast of the Ministry, by 2030 the deficit will grow to 31.2%.
According to the financial expert of the CDU Fritz Günzler, in the budget of Germany for 2028 already "a gaping hole" of about €28 billion.
Bild writes that due to the deficit, some representatives of the ruling coalition consider it possible to raise VAT in 2028.
“If we do not finally move to real savings and do not fundamentally revise government spending and tasks, it will not be possible to solve the problem simply by tweaking the tax levers to tobacco, plastic or sugar,” said Olav Gutting, a financial expert at the CDU.
At the same time, Bild recalls that in August last year, German Chancellor Friedrich Merz said that “there will be no tax increase under him.” However, his government failed to keep that promise. On Wednesday, October 14, the ruling coalition of the CDU / CSU and the SPD approved in the Bundestag the largest ever increase in the tobacco tax – by 2030 a pack of cigarettes will rise in price by €3.3.
In addition to cigarettes, the German authorities intend to increase taxes on alcohol, as well as introduce a tax on sugar in lemonades and other drinks. In addition, according to Bild, millions of Germans are waiting for a “hidden tax increase” of €6 billion.
In July, Bloomberg, citing sources in the German Ministry of Finance, wrote that Germany plans to increase the net volume of new borrowing in 2027 to €118 billion, which is about 7% higher than the April forecast.
At the same time, Merz presented a sweeping reform plan to stimulate the economy. After much controversy, the ruling coalition agreed on measures, including €10 billion in tax breaks and a series of structural changes to the labor market.
As noted by Reuters, a total of 34 points in the reform package, the government intends to approve the main part before the end of the year.
