The December aid means around 15 billion euros in additional costs for the federal government. At the end of the year, the issue of Corona aid should not be over. The federal and state governments are at odds about who pays for it in the long term.
By Kirsten Girschick, ARD capital studio
Another 15 billion – the Chancellery and the federal states had agreed on this. But the federal government no longer wants to pay alone. And who will be responsible for the new debt in the long term is still unclear.
At the pre-Christmas gift blessing from the Chancellery, the prime ministers also tied the package themselves. But the federal government alone should pay the December aid. At least there was a nice “thank you” from Bavaria’s Prime Minister Markus Söder on Wednesday evening, albeit with a certain nonchalance: “Thank you at this point also to the federal government for the help that is being provided.”
Dissatisfaction in Berlin about expectations of the federal states
But displeasure with the offensive demands of the states for federal funds is growing in Berlin. The Chancellor also quickly made it clear in her government statement the next morning: “It is clear that we cannot continue this type of aid until the end of the month.”
Otto Fricke from the FDP emphasized after the so-called adjustment meeting of the budget committee that the frustration with the federal states was “huge” for all budgets, because the federal states would have 30 billion more tax revenues this year than the federal government. “And yet the federal government pays the vast majority of the measures that are necessary here.” Union parliamentary group leader Ralph Brinkhaus also calls for the countries to finally contribute financially to the corona costs.
The federal states see the federal government as an obligation
That doesn’t go down well with many of them. The Green Finance Minister of Schleswig-Holstein, Monika Heinold, is indignant: “I am clearly irritated that Berlin does not see how much we as states are doing. We have raised 5.5 billion in emergency aid here to help the municipalities, the associations , the associations, the culture, the families, and the fact that Berlin politicians seem to be ignoring this at all is terrifying. “
And Bremen’s Mayor Andreas Bovenschulte from the SPD emphasizes that if the federal government restricts the economy with its laws, it is also responsible for providing appropriate assistance.
Debt brake suspended
Regardless of whether the federal or state governments pay – it doesn’t work without new debt. Of the almost 500 billion euros in expenditures planned for 2021 in the now completed budget, almost 180 billion will be financed with new debts. That would be a blatant violation of the debt brake, which is why the finance minister had to present a repayment plan.
In the long term, an estimated ten to 15 billion euros are to be repaid annually. To put it into perspective: Due to the partial abolition of the solidarity surcharge at the beginning of 2021, the federal government is losing ten billion euros in revenue every year. Who should pay for it?
Left wants financing through property levy
The SPD, the Greens and the Left emphasize that these should be the famous “broad shoulders” or “strong shoulders”. Die Linke has already had a one-off property tax calculated by the German Institute for Economic Research.
Accordingly, a revenue of 310 billion euros would be achieved over a period of 20 years if a one-off tax were levied on all assets above two million euros (personal allowance) and five million euros (allowance for business assets and investments in corporations). According to this model, the richest 0.7 percent of the population would be burdened. Left parliamentary group leader Amira Mohamed Ali emphasizes that it should not be the case that the cashier and the nurse have to foot the bill.
SPD fails with “Corona solos” at Union
The SPD does not argue with concrete figures. Party leader Norbert Walter-Borjans wants to avoid that small and medium incomes are burdened by higher taxes or less social security. Numbers should also benefit those who benefit from the crisis: “First we think of the digital economy, which makes huge profits in the crisis. Think of those who have long been using tricky models to bypass the tax. And then we think of those who have particularly high incomes. “
For a short time, the SPD brought a so-called corona solos into play. This was to prevent only those who are legally insured from paying the medical costs of Corona. This was deleted from the joint decision by the federal-state group on Wednesday. Lower Saxony’s Prime Minister Stephan Weil continues to consider the “Corona solos” to be sensible, but the Union is waving its hand against it. In January and February there will continue to be corona restrictions – and thus also a need for economic aid. The federal government expects that, as do many experts. With the beginning of the election year, the dispute over corona costs is likely to become more acute.
You can find out more about this topic today at 6:05 p.m. at Report from Berlin.
