Country monetary equalization: “Getting completely out of hand” – Bavaria pays, Berlin pretends | EUROtoday

As a part of the nation monetary equalization, round 18.65 billion euros have been redistributed in Germany in 2024. The greatest depositor was as soon as once more Bavaria, the Free State is round 9.77 billion euros 52 % of the whole quantity and thus pays seven % extra in comparison with the earlier 12 months. More than two thirds of the cash, 13.92 billion euros, circulate to East Germany. This emerges from a submission of the Federal Ministry of Finance, which is accessible to the German Press Agency in Munich.

“The official figures of the Federal Ministry of Finance confirmed our fears,” stated Bavaria’s finance minister Albert Füracker (CSU). Bavaria has to place one other quantity burden at a report stage for 2024, once more the Free State contributes over half of the whole compensation quantity to the solidarity neighborhood of the federal states. This is “at the expense of our own financial strength and thus the citizens of Bavaria”. The information is once more the proof that the monetary power compensation, because the state monetary equalization is formally talked about, “has gone completely out of hand and that a fundamental revision is necessary”.

Other persons are Baden-Württemberg (round 5.03 billion euros), Hesse (3.73 billion euros) and Hamburg (106 million euros). Rhineland-Palatinate switched from the facet of the donor international locations final 12 months, the nation obtained 524 million euros.

Profitors are Eastern federal states, Lower Saxony and Bremen

Berlin remained the most important recipient nation with round 3.94 billion euros, adopted by Saxony (round 3.25 billion) and Thuringia (2.04 billion). Saxony-Anhalt (1.81 billion), Brandenburg (1.44 billion) and Mecklenburg-Western Pomerania (1.42 billion) additionally benefited from the redistribution.

Among the western federal states are Lower Saxony (1.53 billion), Bremen (925 million) and North Rhine-Westphalia (847 million). The Saarland went 630 million euros, adopted by Rhineland-Palatinate (524 million) and Schleswig-Holstein (267 million euros).

So a lot paid or obtained the international locations

• Bavaria paid 9.77 billion euros

• Baden-Württemberg paid 5.03 billion euros

• Hessen paid 3.73 billion euros

• Hamburg paid 106 million euros

• Berlin obtained 3.94 billion euros

• Saxony obtained 3.25 billion euros

• Thuringia obtained 2.04 billion euros

• Saxony-Anhalt obtained 1.81 billion euros

• Lower Saxony obtained 1.53 billion euros

• Brandenburg obtained 1.44 billion euros

• Mecklenburg-Western Pomerania obtained 1.42 billion euros

• Bremen obtained 925 million euros

• North Rhine-Westphalia obtained 847 million euros

• Saarland obtained 630 million euros

• Rhineland-Palatinate obtained 524 million euros

• Schleswig-Holstein obtained 267 million euros

In 2023, Bayern filed a lawsuit in Karlsruhe

The nation monetary equalization distributes funds between financially robust and financially weak international locations and is meant to make sure virtually the identical residing circumstances in Germany. Bavaria had filed a lawsuit towards the state monetary equalization on the Federal Constitutional Court in 2023 as a result of it has been depositing many of the cash for years. When the court docket comes to a decision is totally open.

“It was right and important to take the way to Karlsruhe against this intolerable state,” emphasised Füracker. The lawsuit affords the possibility of a compensation system, “in which solidarity and fairness are back in the right relationship”. A monetary equalization that has continued such a transparent imbalance on the expense of a single donor for years, has nothing to do with solidarity. “For a return to a fair compensation system, the countries of the country must also have much more off to their own responsibility,” stated Füracker.

Schneider accuses Bavarian “extortion methods”

Carsten Schneider (SPD), East Representative of the Federal Government, sharply criticized Bavaria. Prime Minister Markus Söder (CSU) had determined to compensate for the nation after which complain about it. “With its extortion methods, Söder and the Union have already destroyed the old country financial equalization,” Schneider instructed the portal “T-Online”.

The present system favors international locations with tax -strong municipalities, for the reason that municipal monetary power is barely taken under consideration 75 % and never one hundred pc, says Schneider. The new mechanism is formally referred to as monetary power compensation and was launched in 2020. Even then, Geberländer like Bavaria had benefited from the changeover, Schneider argues.

The Erfurt member of the Bundestag additionally reminds that the monetary weak point of the East German federal states is a results of the German division. Unlike up to now, there are hardly any massive company headquarters within the east and accordingly decrease earnings from company tax. The solidarity compensation system has confirmed itself and should stay.