No Agreement Yet on Saxony's Two-Year Budget

Saxony’s minority coalition of the CDU and SPD is still looking for a partner for the 2027–2028 biennial budget. Following a caucus meeting on Monday, the CDU announced that it would decide on October 26 with which caucus it intends to enter into concrete negotiations, according to CDU caucus leader Christian Hartmann. “Until then, there are still open questions to be clarified and financial and procedural conditions to be evaluated.”

Minority coalition needs ten votes from the opposition

In the previous two-year budget, the Greens and the Left Party served as the majority-providing parties. In return, they were able to push through changes to the government’s draft. The CDU and SPD are ten votes short of a majority on their own. Since the AfD does not participate in the consultation process and is also ruled out as a partner, only the BSW (15 seats), the Greens (7), and the Left Party (6) are in the running to form a majority.

BSW Wants to Suspend Contributions to the Generations Fund

According to CDU politician Hartmann, talks have already been held with all three parliamentary groups. These discussions revealed differing political approaches. The BSW has submitted a counterproposal and wants, for example, to suspend contributions to the Generations Fund for two years in order to make 1.6 billion euros available for the double budget. The fund is intended to reduce future pension liabilities for civil servants. By the end of 2025, approximately 13 billion euros had already accumulated in the Generations Fund.

Tax estimate expected to provide clarity on financial leeway

Hartmann hopes that the new tax estimate due at the end of this week will also provide clarity on what financial leeway still remains. The Saxon government plans to spend approximately 53.5 billion euros over the next two years. This makes the total budget larger than ever before. However, Finance Minister Christian Piwarz (CDU) is deliberately avoiding referring to it as a record budget. He has repeatedly emphasized that, despite the large figures, this budget will also include cuts and reductions. 

Hartmann: “Thoroughness comes before speed.”

CDU parliamentary group leader Hartmann reaffirmed the coalition’s intention to pass the budget in the state parliament before the end of this year. The timeline is ambitious but feasible. Amendments must be submitted by the middle of the second week of November. “Thoroughness takes precedence over speed,” he stated as a guiding principle, while remaining tight-lipped about the details. “Negotiations are conducted; they are not commented on.”

“The question is whether we will succeed in developing a common understanding of how to set appropriate priorities with the limited resources available,” said Hartmann. What is needed, he said, is a reduction in the “two German vices of the 21st century”: a culture of mistrust and a ‘comprehensive coverage’ mentality. “That means we need more flexibility, we need fewer control mechanisms, and we need relief.”

SPD Wants to Get a Complete Picture of the Situation

The SPD parliamentary group had canceled a press conference on the topic at short notice on Monday. In the afternoon, the party issued a statement explaining its decision.
“The discussions on the 2027/28 two-year budget still need some time. With such an important decision, it is crucial to negotiate carefully and find viable solutions,” explained parliamentary group leader Henning Homann. “We need a complete picture of the situation and the scope for action based on the tax estimate,” he said.