The German federal government under Finance Minister Lars Klingbeil (SPD) failed to agree with the Union on budget savings. Instead, taxes on alcohol, tobacco, and cryptocurrencies are set to rise, with new levies on sugar and plastic. The measures appear in the 2027 budget draft to be presented to the cabinet on Wednesday.
Berlin. Federal Finance Minister Lars Klingbeil (SPD) could not reach an agreement with the Union on savings, contrary to earlier announcements. The new draft budget for 2027 and financial planning through 2030 nevertheless include tax increases.
Affected are taxes on alcohol, tobacco, and cryptocurrencies. New levies on sugar and plastic are also planned. Despite these measures, significant gaps remain in the 2027 budget and subsequent years.
The budget benchmarks appear balanced on paper but include so-called Globalpositionen. These obscure measures such as savings from bureaucracy reduction or combating financial crime, on which the Union and SPD hold differing views. A precise quantification is therefore difficult.
A second source reports plans to save more than 20 billion euros, with tax hikes playing a role.
