Published by Global Banking & Finance Review®
Posted on September 19, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleGermany's finance minister announces reforms to address a budget shortfall, including changes to welfare and potential tax reforms.
(Reuters) -Germany's Finance Minister Lars Klingbeil promised far-reaching reforms and budget cuts as his government seeks to plug a looming budget gap, according to an interview with Handelsblatt newspaper published on Friday.
The government will "put together a fair overall package of savings and reforms," Klingbeil said, adding that this would include significant changes to unemployment benefits as part of a reform of welfare payments. No details were spelled out.
Klingbeil spoke after parliament passed the country's first annual budget since sweeping reforms to loosen fiscal rules were passed earlier this year. The coalition currently faces a hole of 30 billion euros ($35.35 billion) in its financial plan for 2027.
"We will also discuss reducing subsidies in the coalition," Klingbeil said, adding that he also saw scope to reform inheritance tax.
($1 = 0.8487 euros)
(Writing by Matthias Williams; Editing by Lisa Shumaker)
Finance Minister Lars Klingbeil promised significant reforms and budget cuts to address a looming budget gap, including changes to unemployment benefits.
Germany is facing a budget gap of approximately 30 billion euros.
Klingbeil mentioned the possibility of reducing subsidies and reforming inheritance tax as part of the government's overall savings strategy.
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