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Why is Bavaria funding Microsoft while cutting family benefits?
The Cost of Dependency: Bavaria’s Microsoft Deal vs. Social Welfare
The Bavarian state government faces a critical juncture regarding its fiscal and digital priorities. Current reports indicate a controversial allocation of funds: the government intends to award a billion-euro contract to Microsoft for Microsoft 365 licenses without a public tender. This decision arises precisely as the state eliminates the child start-up allowance for new parents. This misalignment between technological spending and social cuts raises serious questions about the state’s long-term strategy and ethical responsibilities.
The Erosion of Digital Sovereignty
Harald Wehnes, spokesperson for the “Digital Sovereignty” working group of the Bavarian State Parliament, identifies a severe strategic error in this plan. He warns that bypassing a public tender to award this contract by 2025 undermines local control.
By committing to this path, Bavaria risks becoming a “digital colony” of the United States. Critical data and capital will flow out of the region. Wehnes argues that maintaining sovereignty over data is foundational to state existence. The reliance on US-based security policies, which currently create tension across Europe, further complicates this dependency. When a government loses control of its digital infrastructure, it compromises its autonomy.
Economic Impact on Local Innovation
The financial implications of this deal extend beyond the state budget. Experts emphasize that unilaterally awarding contracts to US giants damages the Bavarian IT sector. The “Digital Sovereignty” working group has formally addressed Minister-President Dr. Söder and Digital Minister Dr. Mehring regarding this issue.
Their report highlights a troubling deviation from European standards. While neighboring regions invest in the European Economic Area to ensure GDPR compliance, Bavaria is reverting to US providers with questionable data protection records. Over five years, nearly one billion euros will leave the Bavarian economy. These funds, if invested locally, could bolster regional software manufacturers and secure digital independence. Instead, the government neglects local expertise, prompting speculation about their lack of trust in Bavarian businesses.
Social Consequences and Public Reaction
The immediate cost of this digital strategy falls on young families. The cancellation of the child start-up grant serves as the first casualty of budget reallocation. Wehnes notes a direct correlation: unlimited spending on foreign software licenses necessitates savings elsewhere.
Citizens and experts alike are mobilizing against these cuts. A petition is currently active, and a demonstration is scheduled for December 13, 2025, at the Munich Messesee. The German Informatics Society has also released a technical statement regarding the security risks involved. The message from the public is clear: digital upgrades should not come at the expense of social security or local economic stability.