{"id":75226,"date":"2024-11-13T14:31:46","date_gmt":"2024-11-13T13:31:46","guid":{"rendered":"https:\/\/dezernatzukunft.org\/?p=75226"},"modified":"2025-05-13T15:49:01","modified_gmt":"2025-05-13T13:49:01","slug":"public-financing-needs-for-the-modernisation-of-germany-summary","status":"publish","type":"post","link":"https:\/\/dezernatzukunft.org\/en\/public-financing-needs-for-the-modernisation-of-germany-summary\/","title":{"rendered":"Public financing needs for the modernisation of Germany (Summary)"},"content":{"rendered":"

Felix Heilmann<\/a><\/strong>, Nils Gerresheim, Levi Henze, Dr. Vera Huwe, Axel K\u00f6lschbach Ortego, Dr. Max Krah\u00e9, Dr. Christian M\u00f6lling, Sara Schulte, Dr. Sabrina Schulz, Dr. Florian Schuster-Johnson, Philippa Sigl-Gl\u00f6ckner, Joke Steinwart, Janek Steitz<\/p>\r\n

English Summary (PDF)<\/a><\/p>\r\n\r\n

\r\n

This study maps the additional public financing needed to achieve widely accepted targets in areas that are pivotal to Germany\u2019s stability and future. Overall, we estimate an additional public financing need of 782 billion euros across all levels of government from 2025 to 2030. This would correspond to an average of around 3 percent of gross domestic product (GDP) per year. Our findings are consistent with and complement other estimates of public needs published this year. The need for significant additional public financing for the future viability and modernization of the country can thus increasingly be seen as a consensus position.<\/p>\r\n

This PDF<\/a> is a translated summary. The full study is available in German<\/a>. \u00a0<\/p>\r\n<\/div>\r\n

Why did we <\/span>write<\/span> the paper?\u00a0<\/span><\/span>\u00a0<\/span><\/h4>\r\n

Germany is currently facing a series of concurrent crises and a considerable modernisation backlog. In light of these challenges, the country is confronted with the historic task of implementing the necessary measures to ensure productivity, public services and security in the coming years.\u00a0<\/span>\u00a0<\/span><\/p>\r\n

In this context, we found it concerning that current budget debates are primarily concerned with budget cuts. Efficiency gains and spending shifts can play an important role, but we felt it was important to refocus the fiscal debate on achieving societal, economic and security goals. To provide a sound basis for this, we have identified where and to what extent additional public resources are needed to achieve widely accepted targets.<\/span>\u00a0<\/span><\/p>\r\n

Through more than 70 expert discussions and a high-level workshop, we identified targets in twelve thematic areas that can be considered widely accepted. We then calculated the additional public financing needed to achieve these targets by 2030. We have documented our results and their derivation in detail, including the publication of our central Excel spreadsheet, so that readers can understand the calculations and adapt them to their own preferences (available in German<\/a>). To our knowledge, this is the most comprehensive analysis of public financing needs currently available.<\/span><\/p>\r\n

What did we learn?<\/h4>\r\n

Overall, we estimate that an <\/span>additional<\/span> 782 billion<\/span> euros<\/span> of public <\/span>financing<\/span> will be needed by 2030 to achieve widely accepted goals in education, decarbonisation, <\/span>digitisation<\/span>, research, health, transport, housing, internal security, climate adaptation, economic resilience, <\/span>defence<\/span> and <\/span>further<\/span> aspects of external security. This would amount to an average of around 3 percent of GDP per year.<\/span><\/span>\u00a0<\/span><\/span><\/p>\r\n

\"\"<\/span><\/span><\/span><\/p>\r\n

All levels of government face significant financing challenges: the annual financing needs we identify for each level of government average 11 per cent of total current expenditure for the federal government, 5 per cent for the states and 10 per cent for the municipalities.<\/span>\u00a0<\/span><\/p>\r\n

In a separate paper, we put forward proposals<\/a> on how a large part of the identified additional needs could be met within the existing debt rules. However, this calculation of additional financing needs stands on its own and should be understood as a starting point for an open discussion on the best ways to meet the identified needs.<\/span>\u00a0<\/span><\/p>\r\n

\"\" <\/span><\/span><\/span><\/p>\r\n

 <\/p>\r\n

Um \u00fcber unsere weiteren Ver\u00f6ffentlichungen auf dem Laufenden zu bleiben, abonniert gerne unseren<\/em> Newsletter<\/em><\/a>. <\/em><\/p>","protected":false},"excerpt":{"rendered":"

This study maps the additional public financing needed to achieve widely accepted targets in areas that are pivotal to Germany\u2019s stability and future. Overall, we estimate an additional public financing need of 782 billion euros across all levels of government from 2025 to 2030. This would correspond to an average of around 3 percent of gross domestic product (GDP) per year. Our findings are consistent with and complement other estimates of public needs published this year. The need for significant additional public financing for the future viability and modernization of the country can thus increasingly be seen as a consensus position.<\/p>\n","protected":false},"author":66,"featured_media":75246,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[194],"tags":[289,220,286,55,228,285,287,265,292,291,280,281,290,266],"class_list":["post-75226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-papers","tag-economic-policy-en","tag-eng","tag-fh-en","tag-fiscal-policy","tag-fiskalpolitik-en","tag-fs-en","tag-js-en","tag-klima-en","tag-laender-und-kommunen-en","tag-lh-en","tag-mk-en","tag-psg-en","tag-vh-en","tag-wirtschaftspolitik-en"],"acf":[],"yoast_head":"\nPublic financing needs for the modernisation of Germany (Summary) - Dezernat Zukunft<\/title>\n<meta name=\"description\" content=\"Institut f\u00fcr Makrofinanzen\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dezernatzukunft.org\/en\/public-financing-needs-for-the-modernisation-of-germany-summary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Public financing needs for the modernisation of Germany (Summary) - 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