Tax estimate 2025: Thinking paper for Merz government – 33 billion euros less by 2029

Less tax revenues, a paralysing economy, but the forecast is not as dramatic as feared. Nevertheless, a lot of work is being done on Finance Minister Lars Klingbeil.

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The first major challenge hit the new black-and-red federal government hard: By 2029, tax estimators expect 33.3 billion euros to be less expensive than...

A few days after taking office, Minister of Finance Klingbeil has to announce: The federal government has to pay 33.3 billion euros less tax revenues by 2029 than last estimated. Klingbeil, however, relativizes - he expected that.

The Working Group on Tax Estimate has once again lowered its expectations: the Federal Government must expect tax revenues to fall in the coming years.

Due to weak economic conditions and tax reliefs, the Federal Government expects about 81 billion euros less revenue by 2029. Finance Minister Lars Klingbeil is facing difficult budget negotiations.