In December 2024, the Berlin city-state government approved a €130 million reduction in its arts and culture budget for 2025, amounting to a 12% cut. This decision has ignited significant backlash from the arts community, with concerns that the cuts could lead to the closure of cultural institutions and diminish Berlin's status as a cultural capital.

The budget cuts affect a wide range of organizations, from major theaters and opera houses to independent art spaces. Notably, the Schaubühne theater anticipates a €2.5 million cut, potentially leading to insolvency by the end of 2025. The Berliner Ensemble is considering canceling multiple productions due to the financial strain. Institutions like the KW Institute for Contemporary Art have had to let certain positions go and close certain programmatic initiatives, such as mediation programs. The cuts have already resulted in the cancellation of festivals and the potential loss of subsidized workspaces for artists.

Berlin's mayor, Kai Wegner, a member of the center-right Christian Democratic Union, defended the budget cuts as necessary for the city's financial sustainability. He argued that Berlin still has a "record budget" of €40 billion and that the reductions are crucial for the city's future, blaming the previous left-wing administration's climate initiatives for putting a strain on the budget. Wegner suggested that the arts sector should seek private sponsorship and become more economically efficient.

Protests have erupted across the city, with cultural leaders warning that the cuts threaten the very fabric of Berlin's vibrant arts scene. An alliance of around 450 institutes that are reliant at least in part on state subsidies, from theaters and opera houses to nightclubs and galleries, have formed an alliance in an attempt to force a rethink over the €130 million cuts. The alliance, Berlin Is Culture, warns that the measures will "permanently destroy Berlin’s cultural infrastructure," leading to "drastic programme cuts, layoffs and closures" and risking "diversity, excellence, resilience and social cohesion."