According to the Bundestag, on October 12 its Budget Committee held a public hearing on the federal government’s draft Budget Support Act 2027 (Haushaltsbegleitgesetz 2027, printed paper 21/7860). During the hearing, a proposal submitted by the Bündnis 90/Die Grünen parliamentary group was also examined.
- The hearing concerned a draft legislative bill rather than enacted measures.
- The bill provides, among other items, for redirecting 2.7 billion euros in emissions trading revenues into the federal budget.
- Social measures in the draft include abolishing the Sofortzuschlag supplement within the Kinderzuschlag and an additional 1 billion euro cut to the federal pension subsidy in 2027.
- Experts differed in their assessments of the scope and economic impact of the consolidation measures.
Measures Proposed in the Draft Bill
As reported by the Bundestag, the federal government links the draft law to the goal of structural budget consolidation and compliance with the constitutional debt limit. The bill provides for transferring 2.7 billion euros from European emissions trading revenues into the federal budget instead of the Climate and Transformation Fund (Klima- und Transformationsfonds). Repayment of loans for the Bundeswehr Special Fund is proposed to begin in 2033. Amendments to budgetary regulations are also planned to streamline administration and reduce red tape.
Regarding social policy, the draft includes ending the supplementary Sofortzuschlag payment within the child allowance supplement (Kinderzuschlag) and an additional 1 billion euro cut to the federal subsidy for statutory pension insurance in 2027. For the annual adjustment of standard social assistance benefit rates (Regelbedarfe), the government proposes returning to a single-stage adjustment mechanism, projecting additional savings.
Expert Assessments
According to the Bundestag report, Désirée I. Christofzik considered that the draft could provide temporary relief for budget planning, though she assessed the contribution of the remaining measures to fiscal consolidation as limited. In her view, a sustainable medium-term solution has not yet been presented.
Stefan Homburg argued that the planned increases in consumer taxes and social spending cuts are minor relative to the overall federal budget volume, adding that shifting funds among public budgets does not alleviate debt and interest burdens. Tom Krebs criticized the social cuts as unnecessary and economically counterproductive. Ulrike Malmendier likewise characterized the consolidation as limited and short-lived. These assessments represent the stated views of the respective experts.
Christian Ochsner highlighted a lack of transparency regarding which specific expenditures are being cut, increased, or shifted. He urged parliament to demand a clearer accounting of the bill’s ramifications.