Thuringia’s New Government Faces Tight Budget Constraints

With 11.8 billion euros in fixed expenditures, the state’s financial flexibility is severely limited, posing challenges for new initiatives and investment planning.

• Thuringia's 2025 state budget proposal totals 13.75 billion euros, but 11.8 billion euros are already committed by laws, contracts, and personnel costs.
• The state’s new coalition government, consisting of CDU, BSW, and SPD, has limited room to implement new projects without adjusting existing laws.
• Personnel costs alone account for 3.7 billion euros, while obligations under federal laws require an additional 2.6 billion euros.
• The state’s financial oversight body warns of underestimated personnel expenses, including unaccounted public sector wage increases, adding to fiscal pressures.
• Demographic changes, including an aging and shrinking workforce, are expected to further strain Thuringia’s tax revenue and financial planning in the coming years.

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