Wegner is pushing for fair compensation for countries in the relief package

Wegner is pushing for fair compensation for countries in the relief package

The Governing Mayor of Berlin, Kai Wegner (CDU), is calling for financial compensation for the states based on the federal government's planned relief package. Wegner, who fundamentally supports the measures to reduce energy costs and taxes, warns, however, of the burden that the package could place on the Berlin state budget. In a letter to Chancellor Friedrich Merz, the CDU prime ministers expressed their concerns about the impact of the relief package on the finances of the states and municipalities. The Süddeutsche Zeitung reports that the relief package provides, among other things, better tax depreciation options for companies that purchase machines, equipment and electric cars. From 2028 onwards, corporate tax is also to be reduced, which will lead to significant revenue losses for the states.

Wegner therefore calls for a fair procedure for distributing the burden. The joint consultation between the federal and state governments on the package, which is to take place in Berlin, faces the challenge of ensuring financing without placing undue burden on the municipalities. In a further step, the prime ministers of several federal states came together and emphasized the need for compensation for the tax losses that could arise from the relief package. The Bayerische Staatszeitung highlights that these departments cannot shoulder the burden without appropriate compensation.

Demands and suggestions

As part of this debate, the CDU-governed states are calling for a reorganization of federal-state funding according to the principle “Whoever orders, pays”. The Prime Minister of Mecklenburg-Western Pomerania, Manuela Schwesig (SPD), warns against a reduction in the effect of the relief package through additional withdrawals of money from cities and municipalities. This highlights the views of government leaders who are concerned that the financial burden is not being shared fairly.

• Die Hauptforderungen umfassen:
• Ein dauerhafter, überprüfbarer Mechanismus für finanziellen Ausgleich.
• Ein höherer Anteil der Länder an der Umsatzsteuer.

Markus Söder (CSU), the Bavarian Prime Minister, has called on his colleagues to support the package without initiating new budget negotiations. He argues that the long-term relief for the business location will have positive effects on tax revenue. He also points out that the countries' financial opportunities have been improved through 100 billion euros from the infrastructure pot and new debt options.

The upcoming talks at the Prime Minister's Conference on June 18th could be crucial for the further course of the negotiations and the establishment of a fair balance between the federal and state governments. Wegner is optimistic that a solution can be found that meets the needs of everyone involved.