Berlin's SPD Leader Justifies New Debt Amidst Budget Changes

The leader of the SPD parliamentary group in Berlin, Raed Saleh, has defended the decision to incur new debts in the upcoming state budget. He emphasized that certain areas, particularly those affecting the well-being of citizens, should not face cuts. Saleh highlighted the importance of maintaining free childcare facilities, after-school programs, and public transport passes for children.

In a recent interview, Saleh stated that the approach would involve a combination of investments in infrastructure and environmental initiatives funded by new borrowing, along with planned reductions in other areas of the budget for the year 2025.

Furthermore, the SPD is seeking to increase revenue through potential adjustments to the property transfer tax and higher parking fees. However, these proposals have faced opposition from their coalition partners, the CDU.

On this Tuesday, the Senate, comprised of both the CDU and SPD, will present its draft for the double budget for the years 2026 and 2027, which coincides with an election year for Berlin. Reports indicate that spending levels will rise compared to the current year's budget.

As Berlin grapples with an ongoing fiscal challenge, the planned annual expenditures are estimated to reach approximately 40 billion euros, with new debts projected to add billions more each year. This increase will further elevate the total debt of the state, which currently stands at 67 billion euros. Notably, the city allocates over one billion euros annually just for interest payments on this debt.