In Germany approved financial reform

В Германии утвердили финансовую реформу

The Bundestag and the Bundesrat voted for financial reform

Federal lands will annually receive from the Central budget on a 9.75 billion Euro with a consequent increase.

The Bundesrat, the representation of the 16 Federal States of Germany, unanimously approved the financial reform, increasing subsidy to the regions. About it reports UKRINFORM.

The document regulates the financial relations between Berlin and the Federal lands of the country. It provides for the reallocation of funds from the Central budget between entities with different financial capabilities.

According to the law, from 2020 Federal land, regardless of the size of the territory and economic indicators will annually receive from the Central budget on a 9.75 billion Euro with a consequent increase.

On the other hand, the center receives more powers in terms of control over their business activities, in particular road construction, school education, tax collection.

The “financial package”, which requires making 13 amendments to the Constitution, approved the next day after he was voted 455 (with 87 against and 61 abstained) the members of the Bundestag. This was preceded by a difficult negotiation. Bundestag deputies and the members of the Bundesrat are most often in your conversations uttered the word “solidarity”.

Meanwhile, experts have already criticized the new law. So, in the Munich research Institute of financial problems (IFO), it said, “as undermining the principle of federalism” and leading to greater centralization.

The law, according to the IFO, will significantly reduce the independence of the regions in decision-making. Moreover, such equalization will not serve as a positive incentive for improving the economic efficiency of land.

As reported Корреспондент.netin 2016 in Germany recorded the highest budget surplus since unification in 1990. The excess of income over expenditure amounted in absolute terms to 23.7 billion euros, higher than the planned figure.