Baden-Württemberg faces €5 billion budget gap in 2027

Finance Minister Danyal Bayaz and Minister-President Cem Özdemir said the 2027 state budget of Baden‑Württemberg must close a shortfall of just over €5 billion. The government plans to draw on a €2.7 billion surplus from previous years, take €800 million in federal economic‑growth loans, and cut €150 million in spending across ministries. Additional measures include reduced contributions to the reserve fund and pension provision, as well as a €500 million municipal stimulus package for cities and towns. The cabinet is expected to approve the core figures by the end of June, after which the state parliament will debate the plan.