German Chancellor’s Investment Package Faces Complications
Saxony’s Prime Minister, Michael Kretschmer of the Christian Democratic Union (CDU), has called for re-negotiations on the federal government’s investment package. The politician emphasized that the revenue losses of states and municipalities must be compensated. In an interview with the news magazine POLITICO, Kretschmer stated, “Two-thirds of the revenue losses due to the special depreciation do not fall on the federal government.” The specific measures are still under discussion and the prime minister expressed optimism that an agreement can be reached by July 11, without the need for mediation.
The Bundesrat will hold its first discussion on the investment package this Friday and the minister-presidents will meet again on Wednesday, with German Chancellor Friedrich Merz, who is also a member of the CDU, in attendance. Saxony will hold the presidency at this meeting.