Financial crisis in MV: budget planning 2026 threatens to fail!

Financial crisis in MV: budget planning 2026 threatens to fail!

Mecklenburg-Western Pomerania faces major challenges in budget planning for the years 2026 and 2027. The state government must deal with minor revenue that clearly leaves expectations. Like N-tv reports, while the revenues grow, during the income go back continuously. This is particularly violent, since the forecasts for 2026 and 2027 show that the income will remain behind expectations by around 95 million euros or 111 million euros.

This day, July 22, 2025, a household exam of the red-red state government takes place in Schwerin. Towards the end of September, the state parliament is expected to debate the financial plan in the first reading. Expenditures of almost 12 billion euros each are scheduled for the coming years. This sum exceeds the expected income and forces already shrunk reserves.

Financial gap and reserves

A look at the details shows that there are no more than 350 million euros to close the budget gap. Finance Minister Heiko Geue (SPD) emphasizes that reducing tax revenue is an essential reason for this malfunction. The demographic development contributes to the challenge, since the population in Mecklenburg-Western Pomerania is continuously shrinking and therefore less aid from the federal government are available. According to NDR The additional action requirement is even 354 million euros.

The state government plans to close the financial holes through cuts and savings, so that the citizens should be spared additional burdens. Prime Minister Manuela Schwesig (SPD) also assures that education and daycare centers are not saved while you pull the ripcord elsewhere. This includes a flat -rate savings in the personnel expenditure of the state administration and a reduction in factual expenditure in various departments.

investments and future prospects

Despite the tense financial situation, the state government does not want to fall back on new debts and plans to keep the investment expenses high. Manuela Schwesig promised investments of 1.6 to 1.7 billion euros each for the coming years. In order to compensate for deficits in school and road construction, federal funds should also flow from an infrastructure special assets. Almost two billion euros from this investment package for the northeast are planned over a period of twelve years.

The state parliament decided on a supplementary budget for 2025 to cover the existing expenses, with 175 million euros being removed from the reserves. In order to stabilize the financial situation, the repayment of the Corona loan was also suspended. However, it remains unclear how a balanced budget will be achieved in the future, because the Federal Government expects that the annual benefits from country financial compensation will in future decrease by around 180 million euros.

The current situation requires a good knack on the part of the state government to master the challenges and set the course for a positive development in Mecklenburg-Western Pomerania. The coming months will show whether the measures can take effect and the financial goals can be implemented realistically.