The Federal Audit Office sees structural problems in German budget policy. He urges the traffic lights to adopt austerity measures - and calls for long-term thinking.
Bonn – The federal government is preparing for negotiations on the 2025 federal budget and the three-year financial planning until 2028. In view of this, the Federal Audit Office is calling on the government to save money. “It is essential to become aware of the serious situation of the federal finances,” said Auditor General Kay Scheller. The necessary change processes required “a comprehensive consolidation plan that takes all social groups into account and enables them to adapt to pressures in a timely manner”.
The Federal Audit Office sees Germany confronted with huge budget policy questions that are still unresolved. Long-term concepts for the sustainability of social insurance were missing - just like concepts for financing future issues such as the climate-neutral restructuring of society and the economy. The Court of Auditors also mention the financing of defense.
Federal Audit Office warns of problems with the federal budget and financial planning
In addition, federal funding for tasks carried out by states and municipalities remained at a high level. According to the Court of Auditors, there is also no risk buffer or scope to react to major problems. There is no improvement in the revenue base in sight. “The dismantling of tax breaks and subsidies and the fight against tax avoidance are not making progress,” it states.
The year 2028 is particularly the focus of the Court of Auditors' statement. In addition to the unresolved problems, there will then be further burdens. The Corona emergency loans would have to be repaid, just like the loans for the so-called special fund for the Bundeswehr. In addition, there is also the repayment of the loans to finance the EU reconstruction fund.
“The federal government must now make clear statements about how it wants to finance these challenges,” is the demand. The government must “align the federal budget and the financial plan with the financial policy reality”.
New debts create new problems – warns President of the Court of Auditors Scheller
However, new debt is not an option. They “only seem to solve problems, they create new ones,” explained Scheller in his role as Federal Commissioner for Efficiency in Administration. He points out that as early as 2024, new loans would be needed almost exclusively for interest payments.
The Court of Auditors also warns against further constitutional exceptions to the debt brake. The so-called special fund for the Bundeswehr should be the absolute exception. An “emergency situation must not become the norm,” says the statement.
The Federal Audit Office calls for thinking in long-term financial horizons
The Court of Auditors recommends that the federal government think beyond current financial horizons. “Long-term future planning doesn’t end after three years,” it said. “The federal government needs a medium and long-term perspective of at least five to ten years for the important future areas of defense, climate protection and social security.” (ms)