Budget deficit faces opposition as CDU and CSU veto plans for higher taxes
In the ongoing debate about Germany's federal budget and budget gap, Finance Minister Lars Klingbeil, from the Social Democratic Party (SPD), has presented a 2026 budget draft focusing on record-high investments in modernising infrastructure and bolstering national security. The proposed expenditure increase of 3.5% over the 2025 budget is aimed at securing jobs and strengthening the economy.
Klingbeil's plan includes significant deficits, partly financed through special off-budget funds. However, concerns about the long-term fiscal sustainability and a funding gap of €172 billion through 2029 have been raised. The expanding deficit is primarily attributed to corporate tax cuts and compensatory payments to states and municipalities. Klingbeil's approach emphasises investment and growth rather than broad tax increases.
In contrast, the current search results do not provide explicit statements about the stances of Jens Spahn (CDU) and Alexander Hoffmann (CSU) on tax increases related to the federal budget and budget gap. However, it is known that the CDU and CSU have expressed support for tough austerity measures and have called for strict savings and a review of expenditures.
Recently, CDU parliamentary group chairman Jens Spahn criticised Klingbeil for not ruling out tax increases, while CSU general secretary Martin Huber confirmed the party's stance: there will be no tax increases according to the coalition agreement.
Alexander Hoffmann, chairman of the CSU parliamentary group in the Bundestag, advocates for state efficiency debates instead of tax increase debates. He believes that the modernisation boost is what people expect, not a cost boost.
In summary, Lars Klingbeil (SPD) advocates for increased public investment funded by higher deficits and tax cuts, emphasising modernisation and job security. He accepts a growing budget gap partly driven by corporate tax cuts, without supporting broad tax increases.
On the other hand, no clear or recent public statements on tax increases or federal budget gaps were found for Jens Spahn (CDU) and Alexander Hoffmann (CSU) in the current search results. However, the CDU and CSU have expressed support for tough austerity measures and have called for strict savings and a review of expenditures.
Policy-and-legislation discussions surrounding Germany's budget and budget gap reveal contrasting stances. While Finance Minister Lars Klingbeil (SPD) advocates for increased public investment and accepts growing deficits through tax cuts, he does not support broad tax increases. In contrast, the CDU and CSU, led by Jens Spahn and Alexander Hoffmann respectively, have publicly expressed support for tough austerity measures and strict savings, without providing recent statements on tax increases related to the federal budget and budget gap.
