Authorities are leading Thuringia towards devastation!
In the eastern German state of Thuringia, financial challenges loom large as the state budget grapples with high spending on civil servants and rising pension burdens. According to the State Audit Office of Thuringia, the missed provision for civil servants before 2017 cannot be made up, and they are now calling for a return to the practice of making such provisions [1].
Thuringia's Finance Minister, Katja Wolf, has acknowledged the difficulties ahead, speaking of "financially challenging years" but considering the situation as manageable [2]. To adapt to demographic changes, Wolf plans to gradually reduce the number of civil servants by 0.5% annually [3].
The state's debt currently stands at over 15.5 billion euros, and the share of pension and interest expenses in Thuringia's budget is expected to rise from around five to over seven percent [4]. By the end of the 2030s, pension costs for retired civil servants in Thuringia could almost triple, reaching around 1.2 billion euros [5].
Wolf remains committed to the civil service model but criticizes short-sightedness in its criticism. She prefers a civil service teacher over no teacher at all in the competition among federal states [6].
In a bid to address these issues, broader discussions on economic and fiscal policies in Germany are underway. Reforms such as changes to the "debt brake" to manage budget deficits are being considered [7]. There are also initiatives like the Citizens' Debate in Erfurt, which highlight the need for fairer tax and fiscal policies, including possible reforms like a consistent prosecution of tax avoidance [1].
The political landscape in Thuringia also plays a role in these challenges. The AfD holds a significant portion of the vote, which influences political dynamics and governmental decisions. Efforts to engage in dialogue between different political parties, including the AfD, are ongoing to address specific issues like judicial appointments [2].
As Thuringia navigates these fiscal challenges, the state continues to grapple with the repayment of 5,500 euros of state debt per new civil servant, a rule that has been in place since 2018. However, this repayment was suspended during the Corona years and is set to resume in 2025 [8].
In conclusion, Thuringia faces significant financial challenges due to rising pension burdens and a growing budget deficit. The state is taking steps to address these issues, such as reducing the number of civil servants and engaging in broader discussions on economic and fiscal policies. The political landscape, particularly the influence of the AfD, also plays a role in these discussions and decisions.
The Finance Minister of Thuringia, Katja Wolf, is facing financially challenging years due to the state's rising pension burdens, and she plans to address this by gradually reducing the number of civil servants annually. To manage budget deficits, broader discussions on economic and fiscal policies in Germany, including changes to the "debt brake," are being considered.
