Thuringia's Government Proposes Extended Debt Repayment to Address Budget Crisis

The Brombeer Coalition aims to generate €400 million by stretching COVID-19 loan repayment terms and altering debt mechanisms.

Thuringia's Brombeer Coalition plans to extend COVID-19 loan repayment from 15 to 30 years, freeing up annual funds for the state budget.
The government will suspend the existing debt repayment mechanism and adopt the federal model for calculating debt limits to address financial shortfalls.
The 2025 budget, currently under discussion, is underfunded, with critical gaps in personnel costs and public service funding identified by Finance Minister Katja Wolf.
The coalition intends to prioritize hiring 360 new police officers, teachers, and staff for a new deportation detention facility despite budget constraints.
Projected deficits for 2026/27 could reach €2.7 billion, with disagreements among coalition parties over using state reserves further complicating financial planning.