The Federal Council stands in the way and stops several traffic light laws

The Federal Council is making life difficult for the traffic light coalition: On Friday, the state chamber stopped several laws that had already been passed by the Bundestag. The Growth Opportunities Act was sent to the Mediation Committee of the Bundestag and Bundesrat, as was the Hospital Transparency Act. New regulations in road traffic law also did not receive the necessary majority. The most important decisions of the Federal Council:

The federal government’s growth package does not find a majority

The traffic light coalition’s growth package to stimulate the stagnating German economy was sent by the Federal Council to the mediation committee, where a compromise must now be found. The states criticized what they considered to be a completely unfair distribution of costs. “It is a contract at the expense of third parties that is being proposed here,” complained Lower Saxony’s Prime Minister Stephan Weil (SPD). He calculated that the law would result in a total loss of state revenue of 32 billion euros by 2028. According to its calculations, the federal government contributes around 37 percent of these losses, with states and municipalities accounting for 63 percent.

The law provides tax relief for companies until 2028 and an acceleration of approval processes. The relief should amount to seven billion euros annually. The law also contains tax incentives to stimulate struggling housing construction. Additional tax incentives for more research are also planned.

State quality atlas for hospitals slowed down

The planned state online atlas for services and treatment quality in hospitals in Germany will not be available for the time being. The Federal Council also called the Mediation Committee on the relevant law. Health Minister Chairman Manne Lucha (Greens) from Baden-Württemberg said the intention was correct. The way the law is presented does not create more transparency, but rather causes confusion. Several states also criticized interference with their sovereignty over hospital planning and called for more financial aid from the federal government. Federal Health Minister Karl Lauterbach (SPD) warned against slowing down the law and sought approval – in vain.

The law is intended to help sick people find the right hospital for them. It stipulates that from May 2024 onwards, a transparency directory will provide understandable information as an interactive portal about the respective offerings at 1,700 clinic locations nationwide. This should make it clear which clinic offers which services.

New regulations in road traffic law fail

New regulations in road traffic law, which were intended to give cities and municipalities more leeway, for example to set up bus lanes, cycle paths and 30 km/h zones, also did not find the necessary majority. The law stipulated that, in addition to the fluidity and safety of traffic, objectives of climate and environmental protection, health and urban development should also be taken into account. Since the law did not receive a majority, the Federal Council removed an amendment to the road traffic regulations based on it from the agenda.

Countries view planned basic child welfare critically

The Federal Council was initially only able to issue a statement on the basic child protection planned by the Federal Government. But it turned out that the countries reject parts of this too. They are particularly critical of the proposed dual structures in the administration. Schleswig-Holstein’s Social Minister Aminata Touré (Greens) complained that the new family service would take over responsibility for the benefits that are to be flat-rateized and the states would be given responsibility for the benefits that are not to be flat-rateized. “From the families’ perspective, this means that a service is divided between different authorities.”

Regulations for lobbyists are being tightened

However, the Federal Council did not oppose all legislative proposals. He approved a tightening of the lobby register, which is intended to disclose information about the influence of lobbyists on legislation. In the future, stakeholders from companies, associations and organizations will, for example, have to make public contacts in ministries down to the head of department level. They must then also indicate which specific proposed laws or regulations their activities relate to. In addition, the main sources of funding and membership fees of the interest groups must also be stated in the lobby register.

Law on state financing of party-affiliated foundations is coming

Following approval by the Federal Council, state funding for political foundations will for the first time be provided on a legal basis. One requirement is that the party to which the respective foundation is affiliated must have been elected to the Bundestag three times in a row. The AfD-affiliated Desiderius Erasmus Foundation is currently ruling this out. But it could also be left out after the AfD’s emerging success in the 2025 federal election. Because what is also required is a commitment to the free, democratic basic order. However, two AfD state associations – Thuringia and Saxony-Anhalt – have now been classified by the Office for the Protection of the Constitution as definitely right-wing extremist. The AfD as a whole is considered a suspected right-wing extremist case.

Help for start-ups and small and medium-sized companies

The state chamber approved the so-called Future Financing Act – a package of measures with more than 30 articles. Its goal is to give start-ups and small and medium-sized companies easier access to the capital market. In addition, investments in renewable energies should be better promoted and tax regulations for investment funds should be aligned with the requirements of other EU states. This is intended to make Germany more attractive as a location for national and international investors.

Compensation for nursing students is coming

The Federal Council approved the Nursing Studies Strengthening Act, which paves the way for remuneration for nursing students. This remuneration is paid for the entire duration of your studies; those who are already in the middle of their studies receive remuneration for the remaining time. The aim is to ensure that more people start studying nursing. In the long term, the academic quota among nursing staff is also expected to increase.

Federal Attorney General Frank becomes the new Federal Constitutional Judge

The Federal Council was unanimous when it came to personnel. He unanimously elected Federal Attorney General Peter Frank as the new judge at the Federal Constitutional Court. He replaces Peter Müller, who has reached the age limit of 68 and the end of his 12-year term in office. Frank has been Federal Prosecutor General at the Federal Court of Justice since October 5, 2015 and therefore head of the Federal Prosecutor’s Office.

The new President of the Bundestag gives her inaugural speech

At the opening of the meeting, the new Federal Council President Manuela Schwesig (SPD) called for a search for broadly supported compromises in view of the many political challenges. “The good, fair compromise for the benefit of many in our country is not bad, but a good feature of our democracy,” said the Prime Minister of Mecklenburg-Western Pomerania in her inaugural speech in the state chamber. Finding compromises is often tiring. “But that’s exactly what makes democracy strong.” The presidency of the Federal Council was transferred from Hamburg to Mecklenburg-Western Pomerania on November 1st.