Our Tax Money Brings Responsibilities

Never before has the German state collected as much money as it does today – and rarely has there been a greater sense that these funds are being handled carelessly.

For 2024, tax revenue reached almost one trillion euros. A figure that should signal stability and reliability. Instead, many citizens are increasingly convinced that rising revenues do not translate into better governance.

While new ideas such as wealth taxes or higher inheritance and gift tax burdens are tirelessly debated on the revenue side, a simple yet crucial question arises: Why is it so difficult to manage the collected funds efficiently, responsibly, and economically?

This problem is particularly evident where taxpayer money is being spent. Directly across the street from us on Berlin’s Koenigsallee, the Federal Agency for Real Estate (BImA) has been renovating a listed building with approximately 14,000 square meters of usable space for the Federal Environment Agency since 2018, following a ten-year planning phase. As with all public construction projects, completion has been delayed and is now scheduled for 2028 – that would mean ten years of construction.

The cost development also speaks volumes: Originally budgeted at 78 million euros, the forecast has now reached 119 million euros. That equates to roughly 8,500 euros per square meter. Any private investor attempting a conversion or renovation at these costs would face bankruptcy. And experience with large and medium-sized government projects suggests that the final cost will not remain at this level.

Furthermore, while construction continues across the street for years, the Federal Environment Agency continues to use temporary rented space in Berlin-Tegel – at a monthly rent of approximately 330,000 euros. The private landlord will be delighted. But for all other taxpayers, the rent and utilities will likely cost another 50 million euros over 10 years. This small construction site in Grunewald isn’t a spectacular mega-project like Berlin Brandenburg Airport or Stuttgart 21 station. Rather, it’s the tip of the iceberg, as it exemplifies a multitude of other public construction projects in our country.

All of this exacerbates the already growing loss of public trust in the state and its administration. Demanding higher burdens on others in the midst of the worst economic crisis since the war is absurd enough. But throwing money away oneself simply doesn’t add up; it undermines the entire system.

Public construction projects require clear responsibilities, binding budgets, realistic schedules, and genuine liability structures. Germany has experienced project developers, efficient construction companies, and functioning models of private responsibility. The consistent involvement of general contractors would shorten construction times and reduce costs.

The state doesn’t have its own money. He only has the money of his citizens. When he spends it, he is always using the fruits of our private labor. Therefore, the waste of public funds is not merely an administrative error; it is a breach of trust. We should no longer accept this with resignation, but instead demand, loudly and clearly, an efficient, transparent, and responsible use of our tax money.

With this in mind

Ernst-M. Ehrenkönig · CEO & Managing Partner