The new coalition plans to increase spending on social housing by 15 times compared to 2024.
The Berlin parliament has approved the financial plan for 2026–2027. This is the largest budget in the city's history. According to estimates, the capital of Germany will spend 45.7 billion euros in 2026 and 46.5 billion in 2027. To cover these expenses, Berlin's debts will increase by another 8 billion euros.
Thus, the total amount of borrowings, reaching 68 billion euros, could exceed 84 billion by 2029. Despite concerns from experts, the governing mayor Kai Wegner (CDU) called the document a "roadmap to the future."
Chairwoman of the Audit Office Karin Klingenberg noted that Berlin is in a difficult situation. According to her, the time for "cutting with a red pen" has not yet come, as the country faces internal and external risks. Nevertheless, she urged the authorities to act responsibly and not allow debts to grow uncontrollably.
Leader of the CDU parliamentary group Dirk Stettner emphasized that the city is making strides in organizing work and social affairs. For example, it is now possible to register at the civil office on the same day, which previously seemed impossible.
In addition, the CDU/SPD coalition plans to increase spending on social housing by 15 times compared to 2024. This should alleviate the situation in the rental market, where families often spend nearly half of their income on housing.
After increasing fines for violating environmental regulations, each district will receive three new inspectors, who are already being called "waste sheriffs" by the public.
Leader of the Greens Werner Graf sharply criticized Wegner. In his opinion, the authorities are "leading Berlin into chaos," and the budget deficit is a result of ineffective management. He proposed to increase the city's revenues through additional fees:
-increase the number of radars and more actively collect fines;
-raise the property purchase tax;
-introduce a packaging tax;
-increase the cost of parking permits for residents.
Head of the SPD faction Raed Saleh supported the idea of increasing fees. He advocated for raising the annual parking permit fee to 160 euros and suggested increasing the property tax.
"It’s time to show pragmatism, not ideology," he stated, addressing his coalition partners from the CDU.
Additionally, Saleh demanded to strengthen control over the rental market to reduce the burden on families.
Representative of the Left, Anne Helm, proposed temporarily freezing the increase in rental rates in state housing companies. According to her calculations, this measure would cost the city 10 million euros a year but would help many tenants.
Leader of the AfD Kristina Brinker, on the contrary, stated that it is the state structures that create the debt pit. According to her, only city-owned enterprises — the transport company BVG and housing corporations — have already accumulated more than 30 billion euros in debts.
She also condemned the idea of installing fences around Görlitzer Park, known as a problem area.
"Berlin has lived behind a wall for long enough," emphasized Brinker.
For the city's residents, this budget means several key changes.
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An increase in parking costs and some taxes is expected.
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The authorities plan to build social housing more actively.
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Control over street cleanliness and compliance with environmental standards will be tightened.
On one hand, this is a step towards improving urban infrastructure; on the other hand, the increase in debt raises concerns among experts.
Berlin faces a difficult choice: to invest in development or to save to avoid drowning in debt. The authorities are betting on investments, while the opposition warns of a financial abyss. No matter how the political struggle unfolds, one thing is clear already — residents will have to pay more for the city to develop.
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