Hesse's Finance Minister Lorz presents the draft budget for 2027: austerity measures announced
Finance Minister Alexander Lorz warns of continued weak growth and a financial gap running into billions.
Quick Look
- Hesse's Finance Minister Alexander Lorz has submitted the draft budget for 2027.
- In view of the ongoing economic weakness and a billion-dollar gap, the country is planning new debts amounting to 1.7 billion euros and is calling for strict austerity.
AI-generated summary
Why It Matters
Hesse has been struggling with weak economic growth that has persisted for over six years. Financial planning until 2030 shows a structural financial gap despite consolidation efforts.
Hesse's Finance Minister Alexander Lorz (CDU) has submitted his proposal for the 2027 budget to the state parliament - and got citizens in the mood to save beyond the coming year. The current financial planning until 2030 shows that the state budget situation remains difficult despite all consolidation efforts, he said in parliament in Wiesbaden. There is a financial gap in the billions in the current plans for the coming years. The country needs to weigh up even more carefully what expenses are affordable, said Lorz.
“Our economy has been suffering from persistent weak growth for over six years. “Never in the history of the Federal Republic have we had to cope with such conditions for so long – a mixture of recession and tough stagnation,” explained the Finance Minister. If the economy weakens, a storm will hit the Hessian budget.
Around 1.7 billion euros of new debt
The days of bubbling tax revenues are over for the time being, warned Lorz. “And we shouldn’t rely on the fact that there will be a drastic improvement in the foreseeable future.” According to the draft, the state budget for 2027 provides for income of around 39.3 billion euros, alongside expenses of around 41.6 billion euros. In addition to new debt, reserves should close the gap.
In line with the debt brake, the country wants to take on around 1.7 billion euros in new debt. This would reduce new debt by around 100 million euros compared to the current year. Lorz announced investments in, among other things, education and infrastructure. He called on the opposition to remain “realistic” in their proposals for the upcoming state budget.
What to Watch
AI outlook — possibilities, not facts
Raising 1.7 billion euros of new debt in the 2027 budget.
Likely · Within months
Open Questions
- What specific savings will be made?
- How does the opposition react to the draft?
