I noticed today....several news stories talking of a money-pit now existing with the Germany Federal Employment Agency (BA).
So....the basic story.....BA now faces a worse-than-expected cash shortfall for 2026....we are talking with a deficit projected at over 5 billion Euro....perhaps on up to 8 billion.
Cause? Well.....higher unemployment and a weaken economy.
So....there's got to be a new tax revenue 'path' created.
Finance Minister Lars Klingbeil.....I suspect....has probably a group working on this, and after summer vacation....will deliver a fairly big new tax project.
The bad news.....this is purely to cover 2026.....then you get into 2027, and 2028....unless some miracle occurs....will require increased tax revenue as well.
What kind of harsh taxation is coming? Anyone's guess.
The problem here....is that Merz and his 'team' (the CDU-CSU).....were voted in to correct the economy....get things stabilized, and avoid unnecessarily inflating taxation.
So if a new Chancellor is the 'solution'....with more taxes coming....don't go expecting the economy to improve. Early election.....my bet.
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