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FINANCE MINISTER OF BAVARIA URGES CAUTION AHEAD OF UPCOMING CABINET RETREAT
Finance Minister Albert Füracker of Bavaria has urged his cabinet colleagues to exercise restraint ahead of the retreat this weekend and Monday at Tegernsee. The upcoming budget, due in the fall, may include some new debt, but Füracker did not specify the extent.
"I cannot stress enough to my colleagues: We have no room in the budget for major new measures," Füracker said to the German Press Agency. "The current fiscal situation requires careful consideration, and each department must prioritize its needs."
While Füracker has not completely ruled out new debt, he did stress that it was not his primary goal. "Taking on debt is not something I am aiming for, but the tax estimate for the fall could determine our course of action," he added.
As the federal government has recently relaxed the debt brake, the possibility of new debt in Bavaria is a subject of discussion throughout the country. The situation will become clearer when the budget is drawn up in the fall.
The budget discussions at the retreat, which will take place in St. Quirin am Tegernsee, will cover several content-related focal points. Among them, the new Federal Minister of Economics, Katherina Reiche (CDU), is expected as a guest.
According to the latest tax estimate, Bavaria can expect a slight surplus of around 0.1 billion euros in 2026 compared to the last fall estimate. However, a "slight trend into the negative" is projected for 2027, indicating that the budget situation remains tense.
Currently, no specific figures or plans for Bavaria’s new debt have been detailed. The state, as a strong one, often follows federal trends but does not always publicize its own budget plans until formal statements or cabinet decisions are made.
The German federal government has recently passed a significant investment package, which includes major infrastructure, defense, and climate spending, as well as reforms to the debt brake, allowing for extra borrowing for these priorities. However, as of late May 2025, a federal budget has not been finalized due to delays following the collapse of the previous coalition.
Bavaria may align its plans with federal trends and seek flexibility or a share of federal funds, though this is speculative. The state may also balance new investments with fiscal restraint, but no concrete details are provided in the available reports.
"In light of the upcoming budget, Finance Minister Albert Füracker emphasizes the need for prudence in the allocation of resources, stressing that there is no substantial room for major new policies during this period. The minister also mentions the delicate budget situation, urging each department to prioritize their demands."
"The developments in the federal level, particularly the recent relaxation of the debt brake and the passing of a significant investment package, could influence Bavaria's employment policy and fiscal strategy, although specific details regarding new debt or investment plans remain unclear at this point."
