Berlin's Finances: Balancing Record Spending with Reductions

Berlin's Double Budget: A Record Spending Plan Amidst Controversy

The Senate in Berlin has proposed a double budget for the years 2026 and 2027, marking a record level of expenditure with over 40 billion euros in the core budget. This ambitious plan, however, has sparked controversy and criticism from various political parties and unions.

Tobias Schulze, chairman of the Left faction in the House of Representatives, has expressed concern about the financial implications of this plan, labeling it a "financial roller coaster ride." He criticized the Senate for not foreseeing any "structural increases in revenue."

Lucas Krentel, a representative from the Verdi union, shares a similar sentiment. He believes that the Senate's decision is a political calculation, playing off the interests of employees against the interests of citizens. Krentel is particularly concerned about the impact on freelancers in the cultural sector, who may be forced to not pay their employees according to the collective agreement or reduce their services.

The Senate's plan includes a number of measures to fund the increased expenditure. Tobias Schulze has suggested increasing the real estate transfer tax, raising fees for resident parking, and potentially forcing the federal government to reintroduce the wealth tax through a lawsuit. The SPD has taken over the initiative for reintroducing the federal wealth tax in Berlin from a court case.

The Left Party is also exploring the possibility of using a lawsuit to make the federal government reintroduce the wealth tax. The revenues from the wealth tax previously benefited the states.

The Greens have been particularly critical of the Senate, labeling them as "amateurs at work" during a mid-term review. Precarious employment relationships are being opened up, particularly in the cultural sector, causing alarm among those affected.

Despite a relevant court ruling, music school teachers are still not being permanently employed. Larger cuts are being made in almost every department, which has raised concerns among those affected.

Higher prices, such as at theater box offices, are being considered to refinance the wage increases. The Senate is planning to spend a total of 12 billion euros more in the next two years. The House of Representatives will discuss the draft budget, with the final vote scheduled for December 18.

The Wealth Tax Act is still in force, but the federal government has not collected the wealth tax since 1997. The capital will spend a record amount in the next two years, but questions remain about the sustainability of this spending plan and its impact on citizens and freelancers alike.