In a special session of the state parliament this Tuesday (3 p.m.), Hesse’s Finance Minister Alexander Lorz (CDU) wants to launch the supplementary budget for 2025. With the help of the relaxed debt brake, the country is taking out additional loans of 1.115 billion euros for the current year. The largest part of this should flow into reserves – a point that has met with criticism from the opposition. Around 300 million euros are earmarked for financially weak municipalities, and 200 million euros for the Frankfurt University Hospital.
In mid-October, the Federal Council agreed to adapt the state debt brake to that of the federal government. This means that for the first time in the current year, the federal states are allowed to take on debts of 0.35 percent of gross domestic product.
“In view of the tense situation of all public budgets as a result of the
years of lack of economic growth in Germany, the
The state government will make use of the newly gained leeway,” Lorz announced. The special session was necessary so that the budget could be passed in the state parliament this year.
