Haseloff Expresses Approval for Investment Package Agreement - Proposal Advancement for Worker Radiation Exposure Safety Directive by Commission
Hey there! Got some juicy news for ya! Saxony-Anhalt's boss, Reiner Haseloff, is pumped about the deal with the feds to help cover the cost of their planned stimulus program for investments. "I'm bloody thrilled the feds are footing the bill for municipalities' lost revenue till 2029 and chipping in for the states too," the CDU guy said. With Germany's economy slumping, they gotta boost private and public investments pronto.
This investment law aims to cut taxes for businesses, but it's gonna cost the feds, states, and municipalities a pretty penny. After weeks of talkin' it out, the feds and states reached an agreement to help out, especially the municipalities.
The feds are keen on covering the complete revenue loss of municipalities from 2025 to 2029 through adjusting VAT fixed amounts. Plus, they're willing to take on a share of the revenue losses of the states proportionally. They're planning to dish out an extra €8 billion from 2026 to 2029 for this purpose.
This cash is gonna flow, among other things, into educational and care infrastructure, university modernization, and a hospital transformation fund. The distribution is based on the Königstein key. Saxony-Anhalt can expect a fixed share for their own investment projects, according to Haseloff: "Together, we're kickstarting Germany's economy again."
- Reiner Haseloff
- Finances
- Investment Package
- Saxony-Anhalt
- CDU
- Location Germany
- Germany
Now, let's meat up some more details.
The Nightly Brew on the German Investment Package
The draft budget for Germany's 2025–2029 run features a hefty investment package, but it's quite hush-hush on how they plan to cushion losses for municipalities and states. The focus is mainly on massive investments in infrastructure across various sectors.
Investment Highlights
- Total Investment for 2025–2029: A whopping €166 billion ($193 billion USD) is being eyed for transport investments and infrastructure upgrades during this period[1].
- Sectoral Allocation: The breakdown looks like this:
- Railways: €106.5 billion
- Roads: €51.9 billion
- Waterways: €7.6 billion[1]
- Additional Budgetary Allocations: An additional €115 billion is earmarked for mobility, digitalization, education, research, and climate action[1].
- Defense Spending: The defense budget is slated to double from €62 billion in 2025 to over €152 billion by 2029[1].
- Debt Financing: The plan involves taking on approximately €847 billion in debt, partly from a special fund worth €500 billion[1].
No Tidy Compensation Packages for Now
While these investments are substantial and tackle issues like transportation and defense, there's no clear plan for a dedicated compensation package to help municipalities or states cover their lost revenues, according to what's been leaked so far. The focus currently lies on federal-level investments and broad funding across various sectors, instead of direct financial support to local or regional governments.
TL;DR: The German investment package involves tons of cash for infrastructure, but details on financial aid for municipalities and states to cover their lost revenues remain shady. The main emphasis is on federal-level investments and broad funding, rather than direct financial support for local or regional governments.
- Reiner Haseloff, the CDU leader in Saxony-Anhalt, expressed his satisfaction about the agreement on financing for the stimulus investments, which includes coverage for municipalities' lost revenue till 2029 and a share for the states, as part of the investment package.
- The German investment package, aimed at cutting taxes for businesses and costing the federal government, states, and municipalities a considerable amount, also includes provisions for covering the complete revenue loss of municipalities from 2025 to 2029 through adjusting VAT fixed amounts, as well as taking on a share of the revenue losses of the states proportionally. This additional financing is expected to amount to €8 billion from 2026 to 2029.
