Germany's Budget Deficit: A Disaster in the Making |
Foreign Policy > Germany
Germany's Budget Deficit: A Disaster in the Making
The consequences of a socialist command economy are reflected in the surging deficits of public budgets.
Thomas Kolbe | May 12, 2026
The transformation of the German economy into a green “transition economy” has failed. The consequences of a socialist command economy are reflected in the surging deficits of public budgets. It is a disaster that lays bare the full extent of incompetence and ideological blindness in German politics.
You are all surely familiar with the endlessly repeated phrase: “The budget is the sovereign right of parliament.” Let us ignore for a moment this faintly monarchical undertone, which in the orbit of our democracy’s party cartel translates performatively into an attitude of rule, and instead look at what awaits us in the years ahead.
It will not surprise you: the political menu that the transformation duo Merz-Klingbeil will serve comes with a bill you would otherwise only expect at five-star restaurants. Your plate will arrive largely untouched, but your wallet will be emptied in one stroke -- by an outrageously high amount.
On Tuesday, the master of debt, Lars Klingbeil, presented the key figures of the federal budget. For the current year, net new borrowing is set at €98 billion -- significantly higher than originally planned. Klingbeil’s budget thus remains marginally below the magical €100 billion debt threshold -- one does not want to stir up too much dust in the 2026 super........