Prime Minister conference
Investment package: countries closed before meeting with Merz
Time is urging: On July 11th, the “investment booster” for the economy by the Federal Council is due. But the federal states expect the federal government beforehand.
In the struggle for the investment package for new economic strength, the state bosses go to today’s meeting with Chancellor Friedrich Merz. “We have a common position,” said Saxony’s Prime Minister Michael Kretschmer (CDU) in Berlin. “We want this country to get back on its feet after three years of recession and a difficult situation. We want this federal government to be successful. If it is successful, it is good for our country, for the federal states and the municipalities.”
Kretschmer was optimistic, with Merz and with Federal Minister of Finance Lars Klingbeil “Steps to compensate for the municipalities to be able to agree on the countries”.
Lower Saxony’s Prime Minister Olaf Lies emphasized that the federal government still needed so that the federal states could agree to the project on July 11th in the Federal Council. “I am very confident for the Chancellery,” said the SPD politician. The economy is waiting for signals such as the so -called investment booster.
Plans mean around 48 billion euros less tax revenue
The Bundestag is scheduled to decide on Thursday of the coming week about a program to get the MAUE economic situation going. It contains incentives for investments, including extended tax depreciation options for machines and electric vehicles. From 2028, corporation tax should also decrease.
However, due to falling taxes, these plans would bring loss of income for the federal, state and municipalities. According to the draft law, it would be 13.5 billion euros less for the municipalities, for the federal states 16.6 billion and 18.3 billion for the federal government – a total of around 48 billion.
The federal states therefore demand financial compensation from the federal government and refer primarily to the precarious budgetary situation of many highly indebted municipalities.
Chairmanland of Saxony to the MPK
dpa
Source: Stern
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