BUND and countries in dispute: millions of losses from investment booster!

Bund und Länder verhandeln über Milliardenhilfen zur Stärkung der Wirtschaft in Mecklenburg-Vorpommern. Kommunen fordern Ausgleich.
The federal and state governments negotiate billions of funds to strengthen the economy in Mecklenburg-Western Pomerania. Municipalities demand compensation. (Symbolbild/MND)

BUND and countries in dispute: millions of losses from investment booster!

Feldberger Seenlandschaft, Deutschland - It is bubbling in the political landscape of Germany, especially when it comes to the current discussion about the federal government's planned “investment booster”. As NDR , this package is intended to boost the economy and create tax relief for companies. But the downside of the medal is the impending financial misery for many municipalities and countries.

The plans bring a decent package with them in terms of tax, and so a loss of a whopping 50 billion euros is forecast for municipalities and countries. Smaller municipalities such as Boock, which have difficulties with borrowing, are particularly affected in order to manage urgently needed projects. Mayor Constance von Buchwaldt from the Feldberger Lake Landscape is fighting for a lack of 7 million euros for investments in important things such as daycare centers and road construction. And that despite the fact that the costs for construction and maintenance are increasing.

unity in the objective? Disability when compensation!

Although the federal states in principle agree that the investment booster should promote growth, there is disagreement on financial compensation for the expensive effects. Prime Minister Manuela Schwesig demands that the federal government are more responsible, since many countries have to bear the main load with two thirds of the tax failures. Her colleague Michael Kretschmer from Saxony sums it up: The financial consequences of the relief package cannot be overlooked, and there is no way around finding a regulation here.

The discussion about redistribution of taxpayers and the support of municipalities has also called on the business representatives. Olaf Höhn, Managing Director of Florida Eis, recently expressed concerns. He believes that the measures are interpreted far too long -term and that instant support is required for companies that are currently stuck in the vortex of negative numbers. His appeal sounds clear: the tax relief for customers must now take place!

Where does the path lead? Agree on criticism

The situation continues to come to a head, since the stability council basically supports the investment booster, but at the same time criticizes the financial burdens for the federal states. Finance Minister Doris Ahnen from Rhineland-Palatinate has already asked to change the proposals in order not to lose sight of the municipal and nationwide effects. Some countries even require a reform of corporate tax to better lacse the financial losses.

Time is urged, because the prime minister conference, which is supposed to deal with these urgent questions, is just around the corner. The negotiations between the federal and state governments are tense, and an agreement on compensation for the cities and municipalities still seems far away. It remains exciting to see how this political zigzag course can ultimately benefit the communities and their important projects.

For many municipalities, it could be crucial whether and how quickly a financial balance is achieved. After all, not only investments in the infrastructure are pending, but also the well -being of the citizens depends heavily on the financial stability of the communities. Tagesschau also reports that the pressure on the negotiating partners is increasing and the demand for short-term solutions is getting louder.

This remains to be seen whether the politicians from the federal and state governments change their course and seriously take into account the concerns of the municipalities, or whether we still have to wait for a solution that may never come.

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OrtFeldberger Seenlandschaft, Deutschland
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