Living Large on the Taxpayer's Dime: Bundestag's Perks Unveiled
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Unfettered Presence Tracking in Germany's Federal Parliament Persists - German Federal Legislature Holds Session
Members of the Bundestag, better known as "diet" in the German vernacular, are well-off individuals. Decisions to boost their allowance aren't met with cheers.
A few years ago, an automatic adjustment mechanism was implemented, similar to pension adjustments. This mechanism, which needs approval after each federal election for the new legislative period, has also faced criticism. With a CDU/CSU, SPD, and Green majority, the Bundestag voted to extend this mechanism last Thursday.
What's in the Bundestag Members' Wallets?
Currently, MPs earn 11,227.20 euros per month, a sum that's taxable. Additionally, there's a tax-free monthly allowance of 5,349.58 euros for duties-related expenses, covering costs like office rent, supplies, taxis, hotels, and living accommodations in Berlin.
The Bundestag also reimburses Berlin office expenses (including supplies for employees or phones) up to a maximum of 12,000 euros per year. MPs can travel free by train and have domestic flight expenses covered if they're work-related.
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From a typical earner's perspective, these perks might seem excessive. What makes it so?
"MPs have a right to a reasonable allowance that ensures their independence," the German Constitution states. The particulars are regulated in the MPs' Act. The allowances are modeled after the remuneration of judges at the highest federal courts. According to the so-called Allowance Judgment of the Federal Constitutional Court in 1975, the allowance should be "appropriate to the importance of the office, considering the responsibility and burden associated with it and the rank of this office in the constitutional order."
The topic has always been a touchy one: If the allowance is too low, MPs might be more susceptible to bribery attempts. If it's too high, criticism abounds.
The Bundestag votes on its own allowance. Why?
This goes back to the Allowance Judgment of the Constitutional Court. The court explicitly required MPs to decide on this issue themselves and in public. The court ruled at the time: "In a parliamentary democracy, it cannot be avoided that the parliament decides in its own affairs when it comes to setting the amount and the further design of the financial regulations associated with the status of an MP."
But why is there now an automatic annual adjustment?
This was decided in 2014 by the then grand coalition at the recommendation of an expert commission. The head of this commission, the former Federal Minister of Justice Edzard Schmidt-Jortzig (FDP), had pointed to the heated public debates that ignited each time the allowance was increased: "Then politicians were labeled 'greedy' and 'self-serving' by their fellow parliamentarians." There had already been a political desire for some time to automate these adjustments.
In line with pensions: If average wages in the country increase by a certain percentage this year, diets will increase correspondingly next year. However, each newly elected Bundestag must vote on whether to continue this procedure for the legislative period. This motion was passed. According to the Left party, this mechanism will result in a diet increase of around 600 euros come July 1st.
Supporters and Critics' Opinions
The SPD and Union support the automatism. This transparent, data-driven approach to a highly political and emotional issue was applauded by the Union's group leader, Jens Spahn (CDU). In economically challenging times, this approach led to corresponding reductions. In 2021, diets actually decreased slightly due to the COVID-19 pandemic.
Criticism comes from the AfD and the Left, both demanding a suspension of the automatic adjustment. The Left party leader, Jan van Aken, criticized the increase before the parliament had started its work. The AfD's parliamentary business manager, Stephan Brandner, opposed automation and advocated for annual increases to be openly debated and voted on in the plenary.
Joint application by CDU/CSU and SPD
- Bundestag
- Diets
- Berlin
- CDU
- SPD
- Members of the Bundestag
- CSU
- Bundestag election
- The Bundestag, following an automatic adjustment mechanism similar to pension adjustments, voted to extend this mechanism last Thursday, which includes an annual increase based on average wages in the country, as decided in 2014 by the then grand coalition and supported by the CDU/CSU and SPD.
- Criticism of this mechanism comes from the AfD and the Left, who argue for a suspension of the automatic adjustment and claim that increases should be openly debated and voted on in the plenary before they take effect, as in the case of the potential diets increase of around 600 euros from July 1st.
