The Federal government’s East Commissioner, Elisabeth Kaiser (SPD), has sharply criticized Bavarian Minister President Markus Söder (CSU) amid the ongoing dispute over the Länderfinanzausgleich (state‑finance equalization).
“Kauf regular, as some representatives from southern Germany do, talk about fusing states or the supposedly unfair Länderfinanzausgleich, they are striking at the federal solidarity between East and West, between North and South” Kaiser told the FAZ on Friday. “Even states like Bavaria have benefited in the past from the support of their neighbours”.
She urged that the current system be preserved. “Those who want to keep the country united and provide equal living conditions throughout all parts of Germany should not shake the existing state‑finance equalization”.
Bavaria has long campaigned for another reform; the latest adjustment entered into force in 2020. In 2023 the Free State filed a complaint with the Federal Constitutional Court, and last year Söder threatened a withdrawal. Just a few days ago he described the Länderfinanzausgleich as “expensive, unfair and unjust”.