Saxony Announces Major Budget Cuts and Plans for Infrastructure Investment

The state's government outlines measures to address a €4.3 billion shortfall while advocating for national funding to support infrastructure and education.

Saxony's government plans to close a €4.3 billion budget gap over two years by halting new administrative hires and reducing ministry budgets.
The state will use over €1 billion in reserves and delay repayment of COVID-19 loans to maintain its €25 billion annual expenditure level.
Ministerpräsident Michael Kretschmer is calling for a €100 billion national fund to upgrade critical infrastructure, including railways and schools.
Volkswagen has committed to maintaining its production facilities in Zwickau and Dresden, though concerns remain about long-term job security.
The state faces pressing challenges, including a severe teacher shortage and debates over balancing regional development priorities.