Politics · Germany · 4 hrs ago
Thorsten Frei warns Germans to expect tax rises and spending cuts in 2027
Thorsten Frei says people in Germany must prepare for higher taxes and spending cuts in 2027.
Frei leads the CDU/CSU group in the German parliament and says years of weak economic growth have strained public finances.
The government plans to raise taxes on tobacco and alcoholic drinks at the start of the year.
A tax break on petrol and diesel is also due to end on 1 January 2027.
The government also plans not to fully adjust income tax for inflation, a practice known as “cold progression” relief.
Frei says a planned income tax reform will only partly offset this effect, leaving workers with up to six billion euros less than they otherwise would have had.
The measures reflect limited money available for public spending, Frei says, and the budget includes cuts that are likely to be unpopular.
The source gives no further details on when the budget measures will be decided or implemented.
Thorsten Frei warned Germans to expect higher taxes and spending cuts in 2027.
The CDU/CSU parliamentary group leader said economic stagnation left no additional funds to distribute without taking money from elsewhere.
Planned tax increases include higher levies on tobacco, alcohol and fuel, while a full adjustment for inflation in income tax is not promised.
Frei said the draft budget included cuts that were controversial and unpopular with those affected.
- Who
- Thorsten Frei, leader of the CDU/CSU parliamentary group in the Bundestag.
- What
- He warned that Germans should expect tax increases and spending cuts in 2027.
- When
- In an interview published on November 5, 2026. The planned measures are for 2027.
- Where
- Germany.
- Why
- Frei cited seven years without significant economic growth and the resulting pressure on public finances.
This story does not have two clearly opposing sides.
Frei gave an interview to Bild about the 2027 budget and taxes.
The tax discount on petrol and diesel is scheduled to expire.
Planned tax increases and budget savings are expected to affect Germans.
- Interview
- Bild, published November 5, 2026
- Fuel tax discount
- Scheduled to expire on January 1, 2027
- Inflation adjustment
- Frei did not promise a full adjustment of income tax for inflation
- Economic growth
- Frei said Germany had seen no significant growth for seven years
- Income tax reform
- Up to €6 billion less in workers’ pockets, according to Bild
1 source
What people are saying
Yes, I believe that is exactly how you have to put it.
If we have no economic growth, then there will simply be nothing additional to distribute in Germany.
And it is a truth—a bitter truth—that in times of stagnation, everything we want to give additionally to one part of the population must first be taken away from another part of the population.