Countries show no interest in enforcing safeguards for canines.
The political landscape in Germany is heating up as the Bundesrat prepares to decide on Friedrich Merz's succession on July 11th. The upcoming weeks will be a challenging path for Merz and his counterpart, Lars Klingbeil [1].
The federal government's financial relationship with the states, particularly regarding the distribution of funds from federal investment programs like the infrastructure fund, is a critical factor in the Bundesrat and political dynamics between the two levels of government. With Germany’s 2025 budget including an infrastructure fund that transfers significant amounts to the states, more than half of which is allocated for railways [3], the states rely heavily on federal funds for critical investments.
In turn, their representatives in the Bundesrat leverage their role in approving federal legislation to influence budget allocations and policy priorities. The distribution of federal funds serves as a crucial political tool, with states negotiating for more investment or favourable fiscal terms, shaping intergovernmental cooperation and conflict [3].
Lars Klingbeil's investment boost is likely to gain approval, but only if the 25 billion euros in lost tax revenue for the states are compensated [2]. Danyal Bayaz, the Green Finance Minister, has stated that he does not support election gifts [4].
The three parties forming the federal government since May 6th are present in every federal state, but compromises need to be in place by July 11th [5]. The next round of negotiations will take place on June 19th [6].
The states have relatively orderly finances compared to the federal government and many municipalities. However, the meeting of the minister presidents last week revealed that the states have concerns, particularly about CSU election gifts like the mother's pension [7].
The states do not need special protection to defend their interests in the political struggle. Michael Schwarz, who can be reached at 711 66601-599 or m.schwarz@our website, is available for further information [8].
Friedrich Merz and Lars Klingbeil are working to prevent the new federal government from becoming a doormat. The last Bundesrat meeting before the summer break will be a crucial test of their negotiating skills [1].
Municipalities are closely watching the policy-and-legislation decisions made by the Bundesrat, as these decisions can have significant implications for their financial interests, given the Federal Government's transfer of substantial funds to the states, a large portion of which is allocated for railways. The states, while working to defend their interests, are not seeking special protection and can be contacted for further information, with Michael Schwarz available at 711 66601-599 or through their website.
