Germany’s finance minister has been defending his budget against claims that it won’t effectively stimulate growth. Meanwhile, the new boss of the German rail operator Deutsche Bahn has been confirmed. DW has more.Germany’s Finance Minister Lars Klingbeil has been pushing back on claims his budget just fills gaps, saying Germany will invest €126.7 billion (about $150 billion) next year in infrastructure, schools, and hospitals.
Klingbeil told parliament that special funds would be used to secure jobs and boost growth rather than bankroll pet projects.
Opposition parties have accused the coalition of piling up debt for tax breaks and pensions instead of real investment.
Meanwhile, Deutsche Bahn has confirmed Evelyn Palla as its new CEO.
Klingbeil defends budget plan against opposition criticism
German Finance Minister Lars Klingbeil has rejected opposition claims that his budget proposal plugs gaps instead of funding real investment.
Opposition parties have argued that the ruling coalition is using large loans to finance pet projects such as the parent pensions and restaurant tax breaks rather than driving economic expansion.
However, speaking in the Bundestag budget debate, the SPD co-leader said special-fund spending would be aimed at securing jobs and boosting growth.
Klingbeil said the federal government would invest €126.7 billion (about $150 billion) next year from the core budget and debt-financed special funds in roads, rail, public transport, schools, kindergartens and hospitals.
“We all know that reforms are overdue, in bureaucracy, in the welfare state, in the economy,” said the minister, who is also the vice chancellor in the government led by Chancellor Friedrich Merz. “Anyone who thinks we can simply carry on as before is mistaken.”
“With the investments from the special fund, we will not plug budget holes, but rather we will rehabilitate what has been neglected for years,” Klingbeil said.
“We are ensuring more growth, we are ensuring greater competitiveness, and above all, we are ensuring that jobs in this country are secure and that we create more employment,” he added.
Disclaimer: The story “Germany updates: Finance minister defends 2026 budget plans” first appeared on Deutsche Welle World and is syndicated via Digpu & NewsTex.