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Caution Urged by Bavarian Finance Minister Ahead of Budget Planning
Bavarian Finance Minister Albert Füracker has urged his cabinet colleagues to exercise restraint as they prepare to draw up the next budget in the fall, acknowledging that there may be no room for significant new measures due to the current tax forecast.
Speaking to the German Press Agency, Füracker emphasized the need for prudence, stating, "We have no room in the budget for major new measures." He acknowledged that each department has ideas and wishes, but stressed the importance of prioritization to make do with available resources.
While Füracker did not rule out the possibility of new debt, he made it clear that it was not his goal. Given the recent relaxation of the debt brake by the federal government, the budget situation remains uncertain, with the tax forecast set to be reviewed in October.
If the tax forecast improves, the budget may be easier to manage. However, if it worsens, new solutions will be necessary. The debate around potential new debt is already ongoing in Germany.
Füracker expressed hope that the measures already decided by the new black-red federal government would boost the German economy significantly in 2026 and 2027. However, he expressed concern about the international situation, particularly President Trump's frequent policy changes, which he described as fueling uncertainty and hindering economic development.
The Bavarian cabinet is set to meet at Tegernsee from Sunday to Monday, with discussions focusing on various content-related focal points. The new federal minister of economics, Katherina Reiche, is expected to attend as a guest.
According to the latest tax forecast, Bavaria can expect a slight surplus of around 0.1 billion euros in 2026 compared to the last autumn forecast, but there is a "slight trend towards the negative" in 2027. Thus, the budget situation remains tense.
The ongoing federal initiative to revive the economy, which includes €110 billion in public investments and a focus on defense, infrastructure, and industrial sectors, may influence Bavarian budget plans. However, specific figures or new policies resulting from the Tegernsee retreat or Furacker's comments are not detailed in the available data.
- Albert Füracker
- Bavaria
- Tegernsee
- Sunday
- Cabinet retreat
- CSU
- Munich
- German Press Agency
Albert Füracker, Bavaria's Finance Minister, underscores the importance of budgeting prudently as the cabinet prepares to outline the next budget. This caution stems from the lack of room for significant new measures due to the current tax forecast.
In anticipation of the cabinet retreat at Tegernsee over the weekend, Füracker emphasizes the need for prioritization and restraint in the face of limited resources. While new debt is not his primary goal, he acknowledges that it might be a necessity if the tax forecast worsens.
During the retreat, the Bavarian cabinet is expected to discuss various content-related focal points, including potential impacts from the ongoing federal initiative to revitalize the economy. However, specific new policies arising from the Tegernsee retreat are not detailed in the available data.
