Austerity advocate issues warning to save funds and doesn't dismiss the possibility of taking on debts - European Legislative Body Needs to Disclose Outcomes of Its Activities to the European Parliament
Bavarian Finance Minister Urges Caution Ahead of Budget Planning, Says New Debt Not Sought but Not Ruled Out
Finance Minister Albert Füracker of Bavaria has called for caution among cabinet members as they prepare for a retreat in Tegernsee this weekend. While the Minister is not ruling out taking on new debt for the autumn budget, he stresses that significant new measures are not feasible given the current tax forecast.
In an interview with the German Press Agency, Füracker admitted, "While taking on debt is not my goal, I must honestly say: I can't completely rule out new debt." The Minister is mindful of the desires and ideas each department may have, but emphasizes the need for prioritization to manage within existing resources.
As the debate over potential new debt continues across Germany, Füracker expresses hope that measures implemented by the new black-red federal government will bolster the German economy in 2026 and 2027. However, international developments, particularly those involving Donald Trump, cause concern as they fuel uncertainty and hinder economic development.
Budget discussions in the autumn will provide more clarity on the budget situation, and Füracker stresses that no major savings rounds or drastic cuts are being considered at present. The Bavarian budget has been growing for years, and he anticipates the coalition will pass the budget unanimously.
Minister Katherina Reiche of the Federal Ministry of Economics is expected to attend the Tegernsee retreat, though specifics on the content of the discussions remain undisclosed. According to the latest tax forecast, Bavaria can expect a small surplus of around 0.1 billion euros in 2026 compared to the last autumn forecast, but a "slight trend towards the negative" in 2027.
Germany has earmarked a substantial amount of funds for public investments, totaling €110 billion in 2025, with a focus on infrastructure and defense. These federal measures could potentially influence Bavaria's economic policies, but local specificities would depend on how these policies are implemented and adapted at the state level.
- In light of the Bavarian Finance Minister's caution ahead of budget planning and his admission that new debt might not be completely ruled out, it is crucial for employment policy in EC countries to strike a balance between necessities and available resources, especially considering the impact of international politics and business on the general-news.
- As the debate over potential new debt continues across Germany, Minister Katherina Reiche of the Federal Ministry of Economics and Minister Albert Füracker of Bavaria will discuss their respective employment policies during the Tegernsee retreat, with particular attention paid to how federal public investments in 2025, focusing on infrastructure and defense, might impact Bavaria's economic and employment policies.
