Schwesig demands: immediate billion dollar aid for municipalities!

Manuela Schwesig fordert finanzielle Unterstützung vom Bund für Mecklenburg-Vorpommern bei drohenden Steuerausfällen.
Manuela Schwesig demands financial support from the federal government for Mecklenburg-Western Pomerania in the event of impending tax failures. (Symbolbild/MMV)

Schwesig demands: immediate billion dollar aid for municipalities!

In a clear appeal, Manuela Schwesig, the Prime Minister of Mecklenburg-Western Pomerania, asked the Federal Government to provide financial compensation for impending tax losses before the upcoming Prime Minister Conference. Schwesig made it clear that the current measures of the federal government to boost the economy, although they are fundamentally positively evaluated, cannot be feasible for the municipalities, since they cannot take the financial losses. In their opinion, it takes concise solutions to achieve improvements for both the federal states and the municipalities. This also affects the faster depreciation of investments, which is of great importance for the financial stability of the municipalities, as [tixio] (https://www.tixio.de/872847-schwesig-bund-bund-finzie- Financial-Fuer-SeDaelle.html).

Mecklenburg-Western Pomerania recorded strong growth last year, but the federal states still feel the effects of an ongoing recession. Topics such as the lowering of electricity tax, a reduced VAT rate for gastronomy as well as a higher commuter flat rate are at the top of the ministerial Prime Minister and her college: inside. Schwesig also received support from Anke Rehlinger, the Prime Minister of Saarland, who brought a mandatory elementary damage insurance for taxpayers into play. Hessen also calls for more financial aid, in particular to participate in the increased federal defense expenditure, according to Süddeutsche Zeitung.

Potsdam conversation about the investment booster

The Prime Minister Conference in Berlin is accompanied by a broad consensus on the need for a so -called "investment booster". By 2029, this could lead to over 25 billion euros in minor revenues for countries and municipalities. In the third year in a row, the federal states are faced with the effects of a recession. North Rhine-Westphalia's Prime Minister Hendrik Wüst made it clear that the circles and cities are now suffering particularly from the pressure of the federal government's investment plans. Chancellor Friedrich Merz was not present due to a trip to the USA, but had previously met with the state bosses for dinner before the next meeting on June 18, reports MDR.

Prime Minister Michael Kretschmer from Saxony, who appears as the "patron saint of the municipalities", leads the conference and wants to ensure that the displeasure of the municipalities is heard. The demands are clear: If the federal government decides laws that reduce the income, a solution for financial relief must also be found. The principle "If you order" makes it clear that the state and local finances have to be placed on a reliable foundation in order to be able to meet future challenges.

economic perspectives in the face of global challenges

In view of these financial challenges, the Federal Minister of Finance emphasizes that the new debt opportunities for the federal states have to exist in order to be able to serve short -term measures. However, the federal government is also careful that neither the special fund nor the new debt is misused to compensate for tax failures. In this context, it is not surprising that the prime ministers demand a rapid design of the special fund for infrastructure and climate protection in order to also create the financial worries of the municipalities. The Federal Council is expected to vote on a relief package on July 11, which could be another important step in the right direction.

Overall, it shows that a certain dialogue between the federal and state governments is necessary to master the economic challenges together and set the course for a stable future. It remains exciting how the talks will develop and whether the Prime Minister can enforce their concerns inside. The resentment grows, and there is something for those responsible in Berlin.

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OrtSchwerin, Deutschland
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