Olaf Lies, the Minister-President of Lower Saxony, believes that the relief premium initiative has no future, stating this in an interview with the “Tagesspiegel”.
The premium faced opposition from the Bundesrat late last week, prompting Lies to concede that the measure is effectively over. Although limiting the duration to 2026 might have been considered, he argued that this would only reduce the impact without addressing the fundamental problem: many businesses are currently unable to afford the costs. Instead, he stressed that a long-term income tax reform is needed to provide sustainable relief for both individuals and companies. Everything else, in his view, is now a lost cause, urging instead that focus must shift to working toward improved future processes.
Lies noted that Lower Saxony voted ‘yes’ during the Bundesrat proceedings, contrary to other SPD-led states. Regarding the votes against the measure from Mecklenburg-Vorpommern (represented by Manuela Schwesig) and Brandenburg (represented by Dietmar Woidke), he suggested these were due to understandable reasons. While admitting that Lower Saxony itself could not afford the premium, he acknowledged the political complexity, stating that despite this, they voted in favor to deliberately demonstrate that they respect and support decisions made by federal politics, arguing that such support is crucial for the overall system to function.
However, the Minister-President also commented critically on the institutional process, stating that the events of the previous Friday “must not happen again”. He demanded that future votes use the structures of the Minister-President Conference more effectively. Furthermore, Lies called for greater inclusion of the Green party, partly because they serve as a partner in many states. He concluded by addressing a systemic deficiency: the federal government failed to coordinate the relief premium with the states in a timely manner.