Wegner Urges Fair Compensation for States at Minister Presidents Conference
Wegner Claims Entitlement to Financial Reparations for Implemented Aid Plan - Urges Financial Compensation for Implemented Aid Package (Regarding Wegner)
In an exclusive interview with "T-Online," Berlin's Governing Mayor Kai Wegner (CDU) expressed his concerns over the financial impact of the federal government's proposed economic relief package on the state budgets. Ahead of the upcoming Minister President Conference, Wegner urged for a fair distribution of burdens, stating, "Who orders, pays."
The relief package, as planned by the federal government, comprises enhanced tax depreciation options for businesses and a declining corporate tax rate from 2028. However, the burdens from these measures will fall upon state and municipal budgets alike.
Wegner highlighted the importance of finding a fair solution, detailing, "All federal states have budgetary troubles, just like the federal government. We need a procedure that shares the responsibilities equitably."
While the Minister President Conference taking place on June 18th might potentially yield a solution, Wegner remains optimistic, suggesting, "I am certain that Friedrich Merz and the federal government understand the pressure states are under."
The CDU politicians appealed for a permanent, verifiable mechanism ensuring financial compensation for states when federal laws lead to increased expenditure or reduced income. The proposed solution involves an increased share of the value-added tax for states.
However, it seems negotiations between state and federal governments on this matter have yet to yield substantial results. Recent developments in federal budget adoption are focused on investment incentives and adhering to fiscal rules rather than state-level compensation linked to a relief package.
- Kai Wegner
- Minister President Conference
- Berlin
- Relief Package
- CDU
- Federal Government
- T-Online International
- T-Online
- Despite the minister president conference, recent developments in federal budget adoption have shown more focus on investment incentives and adhering to fiscal rules, rather than addressing the issue of state-level compensation linked to the relief package, as urged by Kai Wegner.
- Kai Wegner, the governing mayor of Berlin and a CDU politician, has emphasized the need for a permanent, verifiable mechanism ensuring financial compensation for states when federal laws lead to increased expenditure or reduced income, citing vocational training as an example that falls within the jurisdiction of EC countries' policy-and-legislation, and could impact states' budgets significantly.
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