Economy and taxes
“Time is scarce”: Countries also want pace for relief
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At the finish line, it is agreed: the German economy should get a boost. However, the countries warn that this should not be the expense of the municipalities. You can also see the reason for praise.
Despite differences in tax failures, the countries also want to make a pace in the relief package for the economy. A joint meeting of the federal and state governments is planned for June 18, Saxony’s Prime Minister Michael Kretschmer (CDU) and Lower Saxony’s Prime Minister Olaf Lies announced after a meeting of the 16 heads of the country in Berlin. Chancellor Friedrich Merz (CDU) had to cancel his participation in the current consultations in Berlin because of his US trip.
The goal is a decision before the summer break
When asked whether there will be an agreement on June 18, Lies said: “The time is very scarce. So we will have to start immediately.” It is about clearing the way for a decision in the Federal Council in July. The last planned plenary session of the Federal Council before the summer break is planned for July 11th.
The countries fear loss of income, especially for their municipalities. The planned relief package provides for better tax depreciation for companies that buy machines, devices and electric cars. Corporation tax should also decrease from 2028.
Praise for open ears at the federal government
Many heads of government emphasized the goal of boosting the economy. The investment booster and corporate tax reform are wanted, said Kretschmer. “This is an essential contribution to making Germany competitive.”
Both he and read the federal government’s willingness to talk. Kretschmer spoke of a “common spirit”. The atmosphere of eating with Merz the evening before was good, as was the meeting with Vice Chancellor and Finance Minister Lars Klingbeil (SPD) in the morning.
Lies was pleasantly surprised, Kretschmer nodded. During the reign of the traffic lights, the ratio of the state bosses with the then Chancellor Olaf Scholz (SPD) was very tense.
It is also important not to play relief for the economy and investment incentives against each other, said Lies. “We will also have to invest on site.” The goal is a “change of mood” in Germany by noticing that thanks to democracy, they will be a bit better tomorrow than is the case today.
Kretschmer said the countries were the patronage of the municipalities. “We want this reform. We also consider it necessary, but we need a financial balance. The sums are so huge that you can’t just save them.” He announced that “planning acceleration and dismantling of regulatory density” and state modernization should also be discussed at the meeting with Merz.
Countries want more money from the special fund
With a view to the new 500 billion euros in special funds for infrastructure and climate protection, the federal states register additional claims. So far, it is planned that they receive a fifth, i.e. 100 billion euros. Another 100 billion euros in the special fund are planned for climate protection and the climate -friendly renovation of the economy.
In a decision, the Presidents of the Minister are now demanding that “a reasonable proportion” of the climate protection funds be given to them, “without crediting to the means of the countries”. Finally, a significant part of the necessary investments, for example for the expansion of the heating networks, fall into their area of responsibility.
For funds from the special fund, there should also be no co -financing obligations for the federal states and municipalities. Co -financing means that the federal states could not spend money from the federal government in isolation, but would have to increase with their own resources.
dpa
Source: Stern

I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.