German finance ministry advisory board doubtful about efforts to reduce budget gap By Reuters

BERLIN (Reuters) – The advisory board to the German Finance Ministry sees the three options under consideration to reduce a 17 billion euro ($18.34 billion) budget shortfall as problematic, according to a letter seen by Reuters on Thursday.

The German cabinet passed its 2025 budget in July after months of political wrangling. German Finance Minister Christian Lindner told a news conference that the government was looking at innovative ways to reduce the shortfall.

The options under scrutiny are using extra funds from state bank KfW, as well as converting the grants of Germany’s national rail operator Deutsche Bahn and the country’s highway company into loans.

The advisory board to the ministry expressed doubts about these options, arguing that they could put at risk the constitutionally enshrined debt brake.

($1 = 0.9270 euros)