Chancellor Merz meets Saxony: tax revenues are increasing, worries remain!

Chancellor Merz meets Saxony: tax revenues are increasing, worries remain!

Today, October 28, 2025, Federal Chancellor Friedrich Merz (CDU) will meet with the Saxon state government in Dresden. Not only is the tight public finances discussed, but the development of tax revenues is also brought into focus. The Free State of Saxony can expect higher tax revenues for the coming year, but will be faced with a tense financial situation in the years that follow. Saxony generated around 9.8 billion euros in tax revenue in the first half of 2025, which corresponds to an increase of 3.3 percent compared to the previous year diesachsen.de reported.

During his visit, Merz will also visit the Chamber of Crafts Education Center and the semiconductor manufacturer Globalfoundries. His relationship with Saxony's Prime Minister Michael Kretschmer (CDU) is professional and friendly, but there are differences of opinion regarding Russia and the AfD. This shows that the political dialogue is quite complex, even if both work towards common goals.

Economic challenges and future prospects

The future of Saxony's finances remains uncertain. While Merz and Kretschmer hope to be able to further increase tax revenue, Saxony's Finance Minister Christian Piwarz (CDU) warns of possible losses from 2026 and calls for strict austerity measures. The municipalities in Saxony, on the other hand, are faced with a deficit outlook, as a loss of around 38 million euros is expected for 2025 and 2026. This is a challenge that cannot be ignored.

Regardless of these financial challenges, the Happiness Atlas 2025 shows that Saxons' satisfaction has increased. However, there is still dissatisfaction with one's own financial situation, which reflects an exciting discrepancy between general well-being and personal concerns.

Demonstrations and inquiries about safety

A demonstration with the motto “Solidarity instead of division” is taking place near the State Chancellery today. This is another sign that social issues and the feeling of security are being heavily discussed in society. Passersby report their experiences with crime in the Sächsische Zeitung and the Leipziger Volkszeitung, showing that more than half of women in Germany avoid certain places at night to protect themselves, according to a 2022 study by the Federal Criminal Police Office.

In addition to the political agenda, there is resentment in Lusatia about the use of coal phase-out funds. Here, the mayor and district administrator are calling for a change in strategy towards commercial and industrial areas, which further illuminates the topic of economic redevelopment in the region. The insolvency of the Leipzig tram manufacturer Heiterblick also raises questions as it endangers a joint procurement project between Leipzig, Görlitz and Zwickau. While Zwickau has already withdrawn from the supply contract, Görlitz is considering termination, while Leipzig is still sticking to the order.

Today's agenda in Saxony not only offers political discussions, but also important events, such as the 31st Central German Real Estate Day in Leipzig, the presentation of a new residential district by Vonovia and a press conference to present an innovative AI computer. These topics show that the Free State remains active in terms of technological advances and real estate development and also has plans for the future.