Berlin The plan to cut the federal states by a total of 900 million euros through savings in several regional funding programs is met with resistance. Several SPD state ministers declare in the Handelsblatt that they want to take action against the plan by Federal Finance Minister Christian Lindner (FDP) and Federal Chancellor Olaf Scholz (SPD).
Hamburg’s finance senator Andreas Dressel warned: “That would deal another blow to the acceptance of German politics in difficult times.” Berlin uses the federal and state financing as a quarry for budget consolidation, which is “neither wise nor acceptable”.
It is particularly piquant that the criticism from the countries comes from social democrats in particular. Lindner had officially announced the cutback plans in his capacity as finance minister. But it is Chancellor Scholz who is driving the plan significantly, the Handelsblatt learned from government circles.
For Scholz, it is said to be the return for refugee financing. At the end of May, the federal government gave in to the demands of the federal states for more financial support for the care of refugees.
For this year, the refugee lump sum that the federal government makes available to the federal states has been increased by one billion euros. According to government circles, the Chancellor now wants to get as much of it back as possible through regional economic development in order to show that he cannot be shown. When asked, a government spokesman said that the ongoing budget deliberations were not commented on as a matter of principle.
Lower Saxony’s Economics Minister is one of several SPD state ministers who are opposed to the cuts in regional economic development.
(Photo: IMAGO/Eibner)
The cuts are part of the traffic light government’s fundamental dispute over the federal budget for the coming year. They relate to three programs in which the federal government gives money to the states, which in turn co-finance the programs: the joint task of improving the regional economic structure (GRW), urban development funding and the joint task of improving the agricultural structure and coastal protection.
Funding is lost twice
The programs are to be cut by 300 million each, which is not too much in view of other cutback plans. However, the federal states consider cuts at this point to be particularly unsuitable, especially in the case of the GRW.
So far, the federal government has made 650 million euros available to the federal states for this purpose. Rural areas in particular benefit from the program. State representatives fear that a cut here could drive more voters into the arms of the AfD. The far-right party is currently at the poll high.
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With the GRW, the states top up the federal funds with the same amount. The federal government’s cut of 300 million would mean a total loss of 600 million euros in funds.
Brandenburg’s Economics Minister Jörg Steinbach (SPD) said that every cent less in the programs for the regions would have “dramatic consequences”. “Accordingly, the reduction currently under discussion is completely unacceptable,” said Steinbach.
Lower Saxony’s Economics Minister Olaf Lies (SPD) also warned: “We have to be careful that the wrong side does not play one issue off against the other.” Germany must “invest now and not save in the wrong place” from the current difficult situation. .
The Federal Minister of Building is responsible for urban development funding, for which funds are also to be reduced.
(Photo: Reuters)
At the federal level, Economics Minister Robert Habeck (Greens) is responsible for the GRW. He also thinks cuts are wrong. The federal budget must be reorganized, he said on Monday at an event in Bad Saarow, Brandenburg. “But it seems wrong to me that the plan is to cut back on this program in this phase of economic weakness and in this phase when populist forces are abusing the structurally weak regions for their own purposes,” explained Habeck.
Construction Minister Geywitz not convinced of Scholz‘ plans
In addition to the state ministers, there is another SPD member in the federal government who is critical of Scholz and Lindner’s cutback plans: Minister of Construction Klara Geywitz. She is responsible for urban development funding, which is also to be reduced by 300 million euros. So far, the federal government has provided 790 million euros annually for this.
The program is funded in equal parts by the federal government, the federal states and the local authorities. This means that the cut could mean a total minus of up to 900 million euros in urban development funding.
A spokeswoman for the Ministry of Construction indicated to the Handelsblatt that Geywitz might consider this a mistake: “The minister is very concerned about urban development.” She said she would defend the funds. A lot has been achieved for the further development of cities and communities in the past decades.
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According to Karen Pein (SPD), Hamburg’s Senator for Urban Development and Housing, “reducing funds in this situation sends the absolutely wrong signal” in the current difficult phase on the real estate market. Every euro in urban development funding has been proven to release seven more euros in the economy.
So far, however, the polyphonic protest does not seem to have worked. FDP parliamentary group leader Christoph Meyer confirmed much more the plans of his party leader Lindner and Chancellor Scholz. “Countries have gotten used to collectively holding out their hands and shouting loudly over the past two decades,” Meyer said.
The federal states are sitting on surpluses of almost 13 billion euros from last year and will be relieved by the federal government with around 54 billion euros this year. Meyer called the statements from the countries “outrageous”.
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