The Limited Times

Now you can see non-English news...

States want financial commitments from the federal government

2022-10-03T11:38:21.130Z


States want financial commitments from the federal government Created: 03/10/2022 13:28 Bodo Ramelow (Die Linke), Prime Minister of Thuringia, during a press conference on Thuringia's expectations before the special conference of the heads of government of the federal states. © Martin Schutt/dpa The federal government has presented the financing of a huge aid package. But how that should push d


States want financial commitments from the federal government

Created: 03/10/2022 13:28

Bodo Ramelow (Die Linke), Prime Minister of Thuringia, during a press conference on Thuringia's expectations before the special conference of the heads of government of the federal states.

© Martin Schutt/dpa

The federal government has presented the financing of a huge aid package.

But how that should push down the gas price is an open question.

The federal states want to know the details in the Chancellery - and talk about money.

Berlin - The federal states expect Chancellor Olaf Scholz and his traffic light government to clarify the planned gas price brake and the financing of various relief measures.

At the federal-state meeting this Tuesday in the Chancellery, a course must be set for Germany's future course in the energy crisis, said Thuringia's Prime Minister Bodo Ramelow (left) on Monday.

"The homework has to be done tomorrow."

Specifically, the federal states want to talk about financing the new relief measures that the federal government is planning to cushion the high energy prices.

"If the federal government wants 19 billion euros from the states to pay for the relief package it has put in the shop window - at least three billion euros from the municipalities - then you will have to talk about it," emphasized NRW Prime Minister Hendrik Wüst (CDU) on Sunday on “Berlin direct” on ZDF.

The economist Achim Truger thinks this is justified.

“The third relief package puts a permanent strain on the state budgets on the expenditure side through higher housing benefits and the 69-euro ticket.

At the same time, the federal states and municipalities are losing income permanently because of the tax relief, especially with the cold progression,” he told the Düsseldorf “Rheinische Post”.

In view of the forecast recession, he can understand "that the countries want to limit costs, even if they are currently doing well financially".

No "small groceries"

At the same time, Saarland Prime Minister Anke Rehlinger (SPD) called on her colleagues not to act “as small shopkeepers” in the face of the huge rescue package.

The federal government accepts enormous burdens for its budget, she told the Funke media group.

"We countries will also have to shoulder our share." But that doesn't mean that the countries will go along with everything.

The federal government wants to protect consumers and companies from high energy prices due to the Ukraine war with a package of measures worth up to 200 billion euros.

Gas and electricity prices should be capped.

There should be liquidity and equity support for companies.

Details are still open.

The aid is to be financed through loans.

The countries agree that they have further questions, said Wüst.

Above all, it is about the planned gas price brake, three financing problems and further relief steps.

An overview:

Concept for the gas price brake

It is still unclear how gas prices will be capped.

“That has to be clarified quickly now,” demanded Wüst.

"The government in Berlin shouldn't put this off on the long bench." Families and companies should know what they're up to at the beginning of the heating season.

Saxony's Prime Minister Michael Kretschmer (CDU) also criticized in the ARD "Report from Berlin" that the responsible commission should not present its ideas until mid-October.

Brandenburg's Prime Minister Dietmar Woidke (SPD) said that without knowing what was specifically planned, the federal and state governments could not coordinate.

also read

Moscow arrests conscripts – secret services suspect new problems with partial mobilization

After the annexations: what Russia now intends to do with the Ukrainian territories

Financing the housing benefit reform

It is also disputed how the significant increase in housing allowances planned by the federal government is to be financed.

From January, the state rent subsidy is to increase by an average of 190 euros per month - it is also to be paid to 1.4 million more citizens.

"The federal government would like to do a lot, then it should pay for it itself," said Wüst.

So far, the housing allowance has been financed equally by the federal and state governments, but the states no longer want to participate.

Financing of the 9-euro ticket successor

Even after the end of the 9-euro ticket, there should be a nationwide public transport ticket at a price between 49 and 69 euros per month.

The countries should agree on the details among themselves.

Finance Minister Christian Lindner (FDP) has offered to increase the so-called regionalization funds by 1.5 billion euros annually.

In view of the high energy prices, the federal states believe that this is not enough to be able to offer attractive local transport in the long term.

"What's the use of a cheap bus that doesn't run?" Rehlinger said.

Financing the reception of refugees

Hundreds of thousands of people fled Ukraine to Germany before the Russian war.

In the meantime, the numbers are even higher than in the year of the so-called refugee crisis in 2015, said Wüst.

The states are demanding that the federal government honor its promise from the spring to support them more with the costs of accommodation and care.

Additional relief

Before the 200 billion euro package described by Scholz as a “double boom”, the federal states had brought further relief into play.

These include, for example, deferring tax payments, especially from companies, and protecting tenants from evictions if they cannot pay ancillary costs and rent.

It is unclear whether such demands will come up again in discussions with the federal government.

dpa

Source: merkur

All news articles on 2022-10-03

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.