Dispute over state financial equalization: tone gets shriller

Dispute over state financial equalization: tone gets shriller

It must be put to the test whether it is fair, said hasselfeldt on tuesday in berlin. "We stand in full solidarity with all of germany. (…) "bavaria is our home and germany is our fatherland," the CSU politician emphasized. However, the current state financial equalization system does not provide the incentive for sound budgeting and growth.

Bavaria and hesse are currently making another attempt to reorganize the state fiscal equalization system, which has been controversial for years, and the financing of capital cities. They do not rule out the possibility of a new lawsuit before the federal constitutional court if the negotiated changes fail this year.

Bavaria paid half of the funds redistributed nationwide in 2011, with around 3.66 billion euros. The rest of the 7.308 billion euros was contributed by the other donor countries of baden-wurttemberg, hesse and – to a lesser extent – hamburg. The other twelve lander collected money. Bavaria and hesse aim for a cap on payments and more incentives for sound business practices.

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