Double household
Debts for the MV budget 2026/27 – reserves have also been used up
For the first time, Mecklenburg-Western Pomerania is planning to spend more than twelve billion euros per year. There are warning calls and demands for savings from the opposition.
Mecklenburg-Western Pomerania is planning record spending for the next two years, but given the low tax revenue it will have to plunder its reserves and go into debt again. The state parliament decided on the double budget for 2026 and 2027 late on Wednesday evening in Schwerin after more than ten hours of debate with the votes of the coalition factions of the SPD and the Left. The opposition parties criticized the distribution of funds, criticized a lack of willingness to save and withheld their approval of the budget.
Total expenditure of almost 12.2 billion euros is planned for each. This means that the country’s planned annual budget will exceed the 12 billion euro mark for the first time. Compared to the government’s original plans, annual expenditure is around 300 million euros higher – reportedly also because the first funds were injected from the federal government’s investment package. The country will receive almost 2 billion euros from this, which will be invested within a maximum of twelve years.
According to Prime Minister Manuela Schwesig (SPD), Mecklenburg-Western Pomerania is well equipped with the double budget to overcome the challenges of the coming years and move the country forward. “We want to continue to gain economic strength. People and companies can rely on reliability and stability in these times of uncertainty,” said the head of government.
Debt again for the first time in a long time
Since the expected tax revenue is not sufficient to cover expenses, the government is largely liquidating its reserves and is also incurring debt again for the first time in 20 years, apart from the special loans to deal with the Corona crisis. Finance Minister Heiko Geue (SPD) said that the new loans amounting to around 280 million euros per year are within the scope of the so-called structural component, which is permitted under the debt brake.
The cost driver is social spending, which is rising massively, particularly in the area of ensuring participation. The ministries were required to save a total of 100 million euros during ongoing operations.
Investments should remain high
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Despite tight budgets, the country continues to keep investments high, said Schwesig. 1.7 billion euros are planned for 2026 and another 1.6 billion for 2027. “The largest area of investment is economic development. We work closely with business associations, chambers and unions,” emphasized Schwesig.
In addition, the municipalities that were also in a financially difficult situation received additional support. In the next two years there will be a total of almost 350 million euros in addition through the municipal financial equalization, said Schwesig. It was also agreed that each of the 724 municipalities in the country would receive a flat rate of 50,000 euros from the special infrastructure fund as basic financing for investments. Nevertheless, the debate again criticized the municipalities’ insufficient financial resources.
Criticism from the opposition
Opposition speakers also referred to impending budget gaps in the following years and complained about the government’s lack of willingness to save. “We are in a budget crisis. And we lack the impetus to do something about it,” said CDU parliamentary group leader Daniel Peters. He called for more support for medium-sized businesses and startups as well as savings in administration, which had to be made more effective through the use of artificial intelligence.
AfD parliamentary group leader Nikolaus Kramer accused the SPD and the Left of financing ideologically motivated projects such as hydrogen research or green industrial areas. He called for savings in these areas and also in democracy education and asylum seeker benefits. “This budget is not a document for the future, but a declaration of bankruptcy,” said Kramer.
In contrast, Green Party leader Constanze Oehlrich complained about inadequate funding for civil society initiatives and integration projects. In addition, there was a failure to give more weight to climate protection. A clear signal for a real departure was needed. But the budget does not provide this signal. “This is not a strategy for tomorrow, but a continuation of today,” said Oehlrich.
More than 100 changes to the government draft by the coalition
The sometimes emotionally charged discussion was preceded by several months of committee discussions on the red-red state government’s draft budget. According to Finance Committee Chairman Tilo Gundlack (SPD), 113 changes were made.
Left parliamentary group leader Jeannine Rösler emphasized that spending on education would rise to a record level: “More than two billion euros each in 2026 and 2027,” she said. It is about ensuring that all children have equal opportunities for a good education.
René Domke from the FDP accused the red-red government of making calculations at the expense of future generations and only relying on economic recovery. The country’s spending rose faster than revenue. This shows that there is a lack of will to save, said Domke.
dpa