Berlin At the prime ministers’ conference on Wednesday, the federal and state governments are arguing about several billion euros in addition to the gas price brake, as well as the refugee costs.
For 2022 and 2023, the countries are now expecting costs of almost 16 billion euros, it said. Some states like Bavaria would like the federal government to bear half of the costs. “The federal government is still a long way from that,” said the state side.
However, the federal government wants to promise the states at least long-term financial aid for the accommodation of refugees. According to a draft decision by the Federal Chancellery for Wednesday’s meeting, which is available to the Handelsblatt, the federal government wants to make an amount of 1.5 billion euros available for refugees from Ukraine in 2023.
“For the costs associated with those who come to Germany from other countries, the federal government will support the federal states with a general refugee-related lump sum of 1.25 billion euros annually from 2023,” the document continues.
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In the past two weeks, the federal and state governments have discussed at working level, in addition to the distribution of the refugee costs, above all the financing of the third energy relief package with a volume of over 65 billion euros, which the federal government decided at the beginning of September.
Successor regulation for the nine-euro ticket
As it was said, both sides came closer on individual points. In principle, they are prepared to pay 1.5 billion euros each for a follow-up arrangement for discount tickets in local transport. The planned 49-euro ticket will be valid nationwide and will be called “Deutschlandticket” because inflation will soon make it more expensive. It will initially be funded for two years.
But the states also insist that the federal government pays an extra 1.5 billion annually to expand bus and train lines and to be able to cope with the hoped-for increase in demand. The federal government offers a billion.
The federal states are demanding a further 3.1 billion euros for 2022 and 2023 in view of the increased energy costs. However, if the price brake also applies to transport companies, then this requirement is likely to be different.
There is also a dispute about the housing allowance, which the federal and state governments jointly finance. The federal government wants to increase social benefits and make it possible for two million people in need instead of the previous 600,000. This alone would cost four billion euros instead of 1.4 in the future. The federal states have so far refused and demand that the federal government take over the bill alone.
In order to find an agreement on these and other questions, the officials of Federal Economics Minister Habeck have developed a plan that could probably resolve the federal-state dispute. It’s about hardship regulations worth billions. They are intended to help all those “who are not sufficiently relieved by the energy price brakes”, as it was said in government circles.
Habeck meets countries
With the paper, Habeck accommodates the countries, especially those governed by the Union. They had asked for help for the hospitals, for example. The federal government now seems to be ready for this. According to the Handelsblatt, there could be more than eight billion euros for hospitals, care and rehabilitation facilities and social services.
The Economics Ministry is also responding to the desire of the CDU-governed countries to help small and medium-sized enterprises. According to information from the Handelsblatt, small and medium-sized companies could receive support that cannot bridge the time between the suspended advance payment in December and the gas price brake in March.
Habeck also uses tricks to put the highly controversial citizen’s income on the agenda. Tenants should receive help as part of the planned citizens’ allowance if they are overwhelmed by high additional demands from heating and hot water bills. This should also apply to the purchase of heating oil and wood pellets.
The Union is also calling for help for the weak and for oil and pellets, but differently: “In view of the price trend, I think it is necessary to reduce VAT on these fuels,” said Schleswig-Holstein Prime Minister Daniel Günther of the newspaper “Welt”.
However, the CDU-governed states want to negotiate citizen income in the Bundesrat because the differences are too great. Secretary General Mario Czaja has already threatened a blockade, meaning that the departure from the Hartz IV system would not come into force on January 1, 2023 as planned. Accordingly, it was said that the SPD-governed states wanted to try together with the federal government to reach an agreement at the Prime Ministers’ Conference.
“The Union wants to damage the traffic light government with its tactical blockade, but it affects millions of people for whom the citizen’s income brings great financial relief in very difficult times,” Prime Minister Malu Dreyer (SPD) told the Handelsblatt. “A blockade by the Union hits single parents and families without income hard.”
Dreyer was confident that the federal and state governments would definitely agree on the other relief, “since good preliminary work has already been done on this”. Prime Minister Günther explained: “We finally have to deliver successes. People finally want to know what relief there will be in the coming winter months.”
More: Hardship fund and bridging aid: Business and trade unions are demanding speed