Ahead of this Friday’s parliamentary debate concerning a €100 billion law intended to support regional states, representatives of the Green Party have voiced concerns that a significant opportunity is being missed. Andreas Audretsch, deputy parliamentary group leader for the Greens, described the allocation of funds from the special fund as unlikely to deliver substantial impact at the local level, stating it would “scarcely arrive on the ground.
Audretsch criticized the government’s approach, alleging a cyclical financial strategy. He argued that the reduction in value-added tax for the hospitality sector and the increase in commuter tax allowances are simultaneously decreasing tax revenues for regional states and municipalities, while simultaneously necessitating the use of debt to fill newly created budget deficits. He characterized this approach as “the most absurd financial and budgetary policy imaginable.
The Green Party leadership contends that their prior agreement to the €500 billion special fund for infrastructure and climate protection presented a unique opportunity. They now express apprehension that this opportunity is at risk of being squandered.
The debate in the Bundestag will focus on a draft law outlining the transfer of €100 billion from the special fund towards regional investments. This is considered to be the first reading discussion regarding the legislation.