2025-06-18 22:55:12
Economy
Finance

Germany's Leaders Unite for Economic Support Amid Power Cost Concerns

In a recent meeting with Chancellor Friedrich Merz, state leaders, including Mecklenburg-Western Pomerania's Prime Minister Manuela Schwesig, have called for decisive action on economic aid and energy costs. Schwesig emphasized the importance of financing multi-billion euro economic aid packages without placing undue financial burdens on states and municipalities. She also highlighted the necessity of swiftly addressing electricity costs to bolster Germany's international competitiveness.

The Bundeskanzler and state leaders, including Thüringer Ministerpräsident Mario Voigt, agree on the need for economic revitalization but face challenges in aligning on funding responsibilities. An 'Investitionsbooster' is in the works to stimulate economic growth, with discussions revolving around cost-sharing between the federal and state governments.

The leaders also addressed infrastructure investments, with agreements reached on the distribution of special funds. Schleswig-Holstein and its municipalities, for instance, will receive substantial annual allocations to enhance infrastructure. The focus is on fostering trust and reducing bureaucracy, as emphasized by Finance Minister Silke Schneider.

Meanwhile, a consensus was reached to compensate for tax revenue shortfalls faced by local governments. This agreement aims to mitigate financial pressures on municipalities as they manage various responsibilities with limited budget flexibility. The federal government plans to implement measures worth around 30 billion euros by 2029 to support economic growth and employment, although the effects will take time to manifest.

Overall, the meeting underscored a cooperative spirit among Germany's leaders, who are committed to tackling economic challenges while ensuring financial support for local governments.

gmx
18. Juni 2025 um 03:03

Schwesig calls for rapid cost containment on electricity prices

Mecklenburg-Western Pomerania's Prime Minister Manuela Schwesig has called for the financing of the multi-billion dollar economic aid packages before the meeting of the state leaders with Chancellor Friedrich Merz. She emphasized that the joint position of the states is that the package must not go unilaterally to the states and municipalities. Schwesig also insists on rapid cost containment on electricity prices in order to improve Germany's international competitiveness.
AFP
18. Juni 2025 um 16:23

Federal and state governments to be relieved of tax revenue losses

Chancellor Friedrich Merz and the state premiers have agreed on relief for states and municipalities for tax revenue losses. The compensation payments are intended to offset the federal government's planned investment boost, which is expected to amount to around 30 billion euros by 2029. The federal government wants to strengthen the economy through relief measures and secure employment, but the effects of these measures will only become effective with a delay.
DER SPIEGEL
18. Juni 2025 um 17:48

State Premiers with Friedrich Merz: Fundamentally Agreed - DER SPIEGEL

The state premiers have shown themselves to be friendly as they attended their first meeting with Friedrich Merz. However, one important point remains unresolved. The meeting was an opportunity for the state premiers to reassess their relationship with Olaf Scholz. The session was characterized by a positive atmosphere.
Der Spiegel
18. Juni 2025 um 13:49

Das sagt Friedrich Merz nach dem Treffen mit den Länderchefs

Bund und Länder wollen die Wirtschaft in Schwung bringen, müssen sich aber über die Kosten einigen. Friedrich Merz sorgt außerdem mit Äußerungen zu Nahost für Aufsehen. Legt der Kanzler nach? Die Pressekonferenz im Livestream.
CW

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