US EditionState financial equalization - Söder willing to waive Bavaria's lawsuit under certain conditions
10 Articles
10 Articles
Bavarian Minister-President Söder is calling for a fundamental change in the financial structure in Germany, including state fiscal equalization.
Bavaria could drop its constitutional complaint against the state financial equalization scheme under certain conditions. Prime Minister Markus Söder expects a significant reduction in the burden - and is threatening to block the debt brake.
State financial equalization: Söder indicates waiver of legal action in state financial equalization
Bavaria had filed a lawsuit against federal and state finances with the Federal Constitutional Court. Now CSU leader Söder has set out the conditions for an out-of-court settlement.
Bavaria is the largest donor to the state financial equalization scheme. This is a thorn in the side of CSU leader Markus Söder. He is calling for a reduction in payments, and a constitutional complaint has already been filed. However, if new regulations are introduced, this could be withdrawn. The state leader cites the debt brake as a means of exerting pressure.
Bavaria, as the main payer, is suing against the state financial equalization. Prime Minister Markus Söder is now offering to drop this lawsuit if Bavaria receives a discount in federal-state negotiations. In return, he is prepared to relax the debt brake. Source
A lawsuit against federal-state finances is awaiting a verdict at the Federal Constitutional Court. It is unclear when that will happen. CSU boss Söder is now setting conditions for an out-of-court settlement. Under certain conditions, CSU boss Markus Söder is prepared to withdraw Bavaria's constitutional action against state tax equalization. “If there is an agreement, we are prepared to reach an agreement out of court and withdraw our lawsuit …
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