Debt: "Second credibility blow": Next coalition crash threatens in budget
After the disappointment over the tax reform, the CDU/CSU parliamentary group is also increasingly critical of the high new debt. Will the budget package adopted by the cabinet be unpicked again?
Parts of the German coalition government are at odds over the budget, with some lawmakers from Chancellor Friedrich Merz's Union faction criticizing the high level of new debt. The 2027 budget, which was approved in early July, foresees new debt of almost 200 billion euros, a level that is expected to continue through the end of the decade.
This has sparked concerns about Germany's creditworthiness and the potential impact on the country's top credit rating of "AAA". Union lawmakers are now seeking changes to the budget, including possible cuts to certain programs, such as the handyman bonus.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
