"Federal-State Agreement Yields Municipal Air Support": Deal between Federal and State Governments allows municipalities breathing room, calls for enduring remedy.
ver.di United Services Trade Union: Demanding A Permanent Solution for Municipalities' Future
The United Services Trade Union (ver.di) deems the recent agreement between the federal and state governments on financial compensation for the "Investment Booster" as a much-needed breathing space for municipalities: "This interim relief gives municipalities a bit of a break until 2029, and it's damn crucial," said ver.di chairman, Frank Werneke, in a quick fire press conference in Berlin.
On the stones of the highly acclaimed federal-state working group, an agreement was unanimously reached regarding compensation for tax breaks and depreciation that would have resulted in a whopping 14 billion euros revenue loss for the municipalities.
The temporary relief is a step in the right direction to avert the already morose financial state of municipalities from deteriorating further with the federal government's planned tax package. ver.di had persistently voiced this issue.
"Now," asserts Werneke, "we need a permanent solution to shape municipalities for the future and eradicate their structural underfunding." City councils should get a substantial hike in their share of community taxes, and the federal and state governments should take over the municipalities' old debts, he emphasizes. Ultimately, the federal government should commit to the 'who orders, pays' principle to prevent future financial calamities at the municipalities' expense, says Werneke.
Now, you might ask, what's the specific demands from ver.di? Wells, ver.di aims at securing enough and consistent financial resources for municipalities to carry out their essential services efficiently. They're keen on addressing the financial deficit that's been hindering municipalities from shouldering growing responsibilities and demands.
While search results don't provide an exact quote from ver.di outlining the specific financial mechanism or model they prefer, their demand essentially centers on the federal and state governments ensuring stable, long-term funding structures for municipalities. Such funding aims at boosting municipalities’ financial independence and ensuring they can invest in infrastructure, social services, and future-oriented development.
This push by ver.di is part of their broader objective to protect public services and make certain that municipalities have the necessary resources to adapt to future challenges like climate change, demographic shifts, and digital transformation, consequently eradicating their structural financial deficits. [Source: 2, 5]
- The numerical agreement reached by the federal-state working group, regarding compensation for tax breaks and depreciation, is a part of ver.di's broader policy-and-legislation push, addressing the financial deficit of municipalities.
- ver.di's demands, in regards to municipalities' financial future, include a permanent solution that ensures stable, long-term funding, boosting their financial independence for investment in infrastructure, social services, and future-oriented development, thus addressing the structural underfunding in politics and general news.
