Germany Faces Major Tax Revenue Shortfall by 2029

Germany is bracing for a significant dip in tax revenues amounting to 81.2 billion euros less than previously forecasted for the period between 2025 and 2029, according to the latest projections released on Thursday.

The revisions indicate that the federal government alone will see a shortfall of 33.3 billion euros during this timeframe, highlighting the enduring strain on the economy.

Finance Minister Lars Klingbeil attributes the decreases to ongoing economic difficulties, while expressing cautious optimism for relief from 2027 onwards.

(With inputs from agencies.)