Berlin’s Mayor Kai Wegner Calls for Structural Reforms to Ease Fiscal Burden on States and Communes
Berlin’s mayor, Kai Wegner, has expressed his support for the German government’s planned economic stimulus package, but only with certain conditions. In an interview with the Handelsblatt, Wegner emphasized the need for a fundamental review of tasks and responsibilities, citing the example of the “Deutschlandticket” a proposed initiative that he believes is well-intentioned but too costly for the federal government and the states.
Wegner also emphasized the need for a financial balance in the planned reduction of the value-added tax in the gastronomy sector, set to take effect on January 1, 2026. He stated that the reduction from 19 to 7 percent would result in a loss of 100 million euros in annual revenue for the state of Berlin and called for a fair financial compensation from the federal government.
The mayor stressed that the economy needs “dringend Impulse” or urgent stimuli, but that the burden on the states and communes must remain manageable. He called for structural changes, emphasizing the principle that “who orders, who pays.”
To alleviate the financial burden on the states and communes, Wegner also proposed reviewing standards and examining transfer expenditures in the federal, state and local governments. He believes that a state reform, which would rebalance expenses and revenues, is necessary. The mayors of the states are currently in talks with the chancellor to reach a reliable agreement on how the states can be relieved of their burdens and Wegner expressed his willingness to consider a compromise if such an agreement is reached.