Rhine calls for connectivity law: end the money dispute!

Rhine calls for connectivity law: end the money dispute!

Hesse's Prime Minister Boris Rhein (CDU) has urgently called for a legal regulation of the principle of connectivity between the federal and state governments. In a recent statement, he emphasized the urgency of a new, rules-based compensation mechanism to clarify financial relationships between the two levels. “Citizens are tired of the federal and state governments fighting over money for years,” said Rhein, arguing that the federal and state governments should fix these aspects legally or contractually.

The principle of connectivity is a fundamental component of German constitutional law and is anchored in Article 104a of the Basic Law. It means that the performance of tasks and the associated financial responsibility belong together. The level responsible for completing a task must also ensure financing. In the relationship between the federal and state governments, the expenditure burden follows the task burden, which is referred to as execution connectivity. In comparison, there is often a connection between municipalities, which is criticized because municipalities often have to pay for costs that are only partially covered by the federal and state governments.

Policy change required

Rhein also called for a change in policy in relations between the federal and state governments. He speaks of the record debts that will be incurred in the coming years and sees this as a question of intergenerational justice. “We have to invest in the Bundeswehr and the infrastructure,” he emphasized and defended the necessary investments. He also rightly praised the Chancellor's offer of financial compensation for the states.

Especially in the current debate about infrastructure loans, Rhein appeared to be ignorant of the criticisms of the lack of additionality of these funds. He emphasized that the financial resources will flow into schools, hospitals, the expansion of daycare centers and into research, which in his opinion should be viewed positively.

Connectivity principle in detail

As already mentioned, the principle of connectivity in the German legal system is divided into two types, which apply at both a financial and a legal level. The cause connectivity and the execution connectivity determine how tasks are distributed and financed. Since the federalism reform in 2006, a direct transfer of tasks from the federal government to the municipalities has been prohibited, which further complicates the existing problem.

Overall, it is clear that Hesse's Prime Minister Rhein not only calls for a reform of the existing system, but also wants to strengthen the responsibility of everyone involved in federal politics. The need to address long overdue structural issues has become evident in the political debate.

For further information on the legal basis of the connectivity principle, see also juraforum.de.

Details on the political debate and Boris Rhein's statements are available table.media to find.