(de-news.net) – Opposition parties and representatives of economic interest groups have expressed strong disapproval of Finance Minister Lars Klingbeil’s (SPD) proposal to explore the possibility of increasing taxation on high-income earners as a means of addressing projected budgetary deficits for the fiscal year 2027. Steffen Bilger, Parliamentary Secretary of the CDU, acknowledged the legitimacy of the Minister’s concerns regarding fiscal consolidation. However, he asserted that tax increases did not constitute an appropriate policy response. He drew attention to potential avenues for expenditure reduction, particularly within the domains of social welfare — such as citizen benefits and migration policy — and emphasized the imperative of economic relief over the imposition of additional financial obligations. Bilger further contended that, although the governing coalition had initiated cost-reduction measures, these efforts required sustained implementation. He affirmed that the Union would support such initiatives, provided they did not entail increases in taxation. The proposed reforms were also met with skepticism by economic associations, including the Central Association of German Crafts.

Conversely, the SPD defended the Finance Minister’s position. Dirk Wiese, Parliamentary Secretary of the SPD, underscored the necessity of securing compensatory funding in order to facilitate the relief of low- and middle-income households, as stipulated in the coalition agreement. He argued that increased contributions from individuals with substantial financial resources would be equitable, given that many citizens exert considerable effort yet continue to face economic hardship. Wiese further emphasized the importance of establishing clear policy priorities in negotiations with coalition partners, noting the finite capacity of the federal budget.