German State Leaders Urge Financial Compensation for Municipalities and Local Governments
In the aftermath of the Minister Presidents’ Conference, the Prime Minister of Saxony, Michael Kretschmer, emphasized the importance of considering the interests of cities and municipalities. “The states are the patrons of the municipalities” he stated in Berlin, adding that as a prime minister, he must also represent their interests on the federal level. Therefore, the planned tax relief measures under the slogan “Investments Booster” by the new federal government require a financial compensation.
Kretschmer noted that the sums involved are so significant that they cannot be easily cut back. “Many municipalities and states are scraping by at the edge of their budgets’ constitutionality” he said. The demand for financial compensation is a bipartisan consensus, the Saxon leader added.
Meanwhile, the Prime Minister of Lower Saxony, Olaf Lies, praised Chancellor Friedrich Merz for the joint round of talks on Wednesday evening. The states regretted the Chancellor’s absence from the Minister Presidents’ Conference, but had “full understanding” for the reason, said Lies. Merz had to cancel his attendance to visit the White House instead. The meeting is scheduled to be rescheduled in about two weeks.
Lies further emphasized that one should not “set different measures against each other.” He specifically mentioned the “Investments Booster” for the economy and the 500-billion special fund with 100 billion for states and municipalities. “These are independent points” the Lower Saxon Prime Minister said. “It must come at the same time” he added.