Bundesrat: The federal states see “serious deficiencies” in the relief package

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Hesse's Prime Minister Volker Bouffier (CDU): "Serious deficiencies" in the relief package

Photo: IMAGO/Political Moments

The federal states have strongly criticized the federal relief package to cushion the consequences of the war in Ukraine.

At a special meeting of the Federal Council on the supplementary federal budget, Hesse's Prime Minister Volker Bouffier (CDU) said that the package would be at the expense of the federal states.

In addition, some of the aid did not reach those who needed it most.

For example, pensioners and students would not benefit from the energy cost flat rate of 300 euros because it would be settled via wage tax.

In addition, the nine-euro ticket planned from June arouses high expectations, which cannot be redeemed after the three-month period of validity has expired.

It is true that relief is correct in view of the explosion in energy prices and the increases in food costs.

However, the path chosen by the federal government has such “serious flaws” that he cannot agree to it, said Bouffier.

»Whoever orders the music should also pay for it«

The Federal Council discussed the supplementary budget at a special session on Wednesday.

After the Bundestag has passed the resolution, the Chamber of States can finally approve the budget.

Because the budget law does not require approval, the state chamber cannot practically stop the project.

Lower Saxony's Finance Minister Reinhold Hilbers (CDU) also criticized in the Bundesrat that the federal states and local authorities were "excessively asked to pay" for the financing.

The relief package came from the federal government, the states were not involved at all.

“Then it makes sense for the federal government to bear the associated financial burden.

Whoever orders the music should also pay for it.«

Debt increases

The new debt of EUR 99.7 billion initially estimated in the draft budget for the current year is to increase by EUR 39.2 billion with the supplementary budget – to EUR 138.9 billion.

The relief package for citizens includes the temporary reduction in energy taxes on fuel, the energy price flat rate of 300 euros for all taxpayers, a one-time 200 euros for recipients of social benefits, the child bonus of 100 euros and reimbursements to the federal states in the amount of 2, 5 billion euros for the nine-euro monthly ticket for public transport planned for the months of June to August.

A total of almost 14 billion euros are included in the supplementary budget for risks that cannot yet be precisely quantified.

It is about the effects of the war-related expected lower economic growth.

More money for Ukrainian arms purchases

With a view to the war in Ukraine, the supplementary budget includes an increase in the so-called training aid for partner countries by EUR 1.8 billion to EUR 2 billion, which is primarily intended to enable Ukraine to buy more weapons.

The federal states and municipalities are to receive two billion euros for the reception and care of refugees from Ukraine.

Another billion euros will be made available to secure energy reserves.

Also included are additional expenses in connection with the corona pandemic.

The latter concerns costs for vaccinations and tests as well as further financial relief for hospitals.

The pandemic-related costs are also the main reason for the high level of debt already planned in the original draft budget, for which an exception rule from the debt brake is used.

col/AFP/dpa