Berlin Senate Approves Reduced Budget Cuts for 2026/27

The Berlin Senate has reached an agreement on budgetary guidelines for the fiscal years 2026 and 2027, significantly reducing the anticipated budget cuts. The decision, made during a meeting early Tuesday, presents a more favorable financial outlook than previously discussed, with planned savings exceeding one billion euros across both years.

The education sector will continue to hold the largest financial allocation, with a proposed budget of EUR5.387 billion for 2026. This amount is set to increase to EUR5.499 billion in 2027, reflecting the administration's commitment to prioritizing education despite the overall need for austerity.

Following closely is the science administration, which is projected to have a budget of EUR3.519 billion in 2026, with a slight increase to EUR3.554 billion in 2027. These figures indicate that, even amidst budget cuts, significant investments in education and science remain a priority for the Senate.

The recent budget proposal reflects higher spending limits than those discussed in earlier negotiations between coalition leaders. This shift is attributed to provisions for rising personnel costs and alternative financing options, including transaction credits, as indicated by sources familiar with the discussions.

Finance Senator Stefan Evers is expected to address these discrepancies later today, providing insights into the reasons behind the reduced austerity measures and the overall budget strategy moving forward.

The agreement follows intense negotiations that lasted until just before the Senate's early morning session, highlighting the ongoing discussions among different governmental departments regarding the budgetary constraints. Notably, the justice administration has expressed concerns about the feasibility of adhering to its statutory obligations under the new budgetary constraints, while also noting a decrease in required savings by EUR23 million compared to initial proposals.

As Berlin navigates its fiscal challenges, the Senate's latest budget plan aims to strike a balance between necessary cuts and the preservation of essential public services, particularly in education and research, underscoring the city's commitment to fostering growth and development even in a financially restrained environment.