Financial crisis in Thuringia: Nightmare for municipalities threatens!

Financial crisis in Thuringia: Nightmare for municipalities threatens!

Nordhausen, Deutschland - In recent times, many cities in Thuringia and all of Germany are faced with a financial challenge, the Federal Government's weakening economy and the plans of the Federal Government to tax relief is tightened for companies. Next Wednesday, the federal-state discussions in Berlin will discuss the solutions to cope with this crisis. Thuringia's Prime Minister Mario Voigt (CDU) has already requested a clarification of the federal-state financial relationships and suggests an automatic compensation mechanism that is intended to cushion tax failures.

"The countries should be relieved first, and in the course of economic recovery they could then make repayments to the federal government," said Voigt. These suggestions meet the concerns of Thuringian left-wing co-co-chair Ralf Plötner, who warns of negative effects on the Thuringian municipalities. He asks Voigt to do everything to prevent financial losses.

budget gaps and planned investments

A future -oriented municipal investment program in Thuringia, which is scheduled for four years with one billion euros, could offer a way out of the financial misery. Nevertheless, the Thuringian finance minister Katja Wolf warns of considerable loss of income for the state budget, which could result from tax relief. According to the calculations of its ministry, the budget could be affected as follows in the coming years:

Wolf therefore calls for the need for financial compensation by the federal government, especially since the negative impact on the municipalities has not yet been fully recorded.

countries in the Zwickmühle

The dilemma is further reinforced by a billion -dollar tax package of the federal government to strengthen the economy. This package was fundamentally supported by the federal states, but they call for a financial compensation for the resulting tax failures. In the Federal Council, Prime Minister Hendrik Wüst (CDU) emphasized that the states and municipalities are not allowed to bear the costs alone. Without financial compensation, it could be difficult to agree to the tax package.

experts estimate that the federal government, the federal states and municipalities will take a total of around 50 billion euros less taxes. The federal government plans to take over a third of these failures, while the remaining two thirds must be worn by the states and municipalities. Thuringia expects over 200 million euros from the federal financial package annually, which would be distributed by the Königstein key.

With a clear focus on the urgent financial needs of the municipalities, the German Trade Union Confederation (DGB) appeals to the federal government not to leave the affected cities in the rain in the event of trade tax failures and calls for a comprehensive compensation.

The upcoming discussions on Wednesday will be crucial to set the course for the financial future of the federal states and in particular the municipalities. It remains to be seen whether a common denominator will be found before the summer break is due in July. A good hand in the negotiations is needed to meet the challenges.