Haseloff expresses approval for the investment deal - Workers will now be safeguarded from radiation hazards thanks to the Commission's adopted directive on radiation protection.
Reiner Haseloff, the charming CDU politician serving as Minister-President of Saxony-Anhalt, has beamed with relief after striking a deal with the feds to ease the financial strain of a gigantic investment stimulus plan. "I can't help but thank the central government for stepping up to cover municipal losses in revenue all the way until 2029, and chipping in a chunk of state losses, too," says Haseloff with a grin.
Boost for Municipalities and States - Raining Rainbows and Billions
The federal government's brainchild to boost Germany’s location, expectedly, means hefty budget cuts for the feds, states, and municipalities. But fear not, fret not! After weeks of intense haggling, the feds and states have called a truce to distribute much-needed funds to the frontlines.
The government's fingers are twitching with excitement to enact a law aiming to spice up the economy. It'll boast tax relief for businesses, but this too comes with a catch: prodigious revenue losses for the trifecta. Fret not, for relief is on the horizon! The feds have promised to completely shoulder municipal losses starting 2025 and carry on till 2029. The compensation will be doled out in the form of an adjustment to the VAT fixed amounts.
As if that wasn't enough, the feds also plan to cover a portion of the states' losses, shelling out an extra €8 billion over the period between 2026 and 2029.
Coins for Education, Care, and Health
The funds are going to pour, among other places, into the educational and care infrastructure, the modernization of universities, and a transformation fund for hospitals. The funds will be allocated according to a standard known as the Königstein Keys, and Saxony-Anhalt will receive a fixed allocation to put towards its custom projects. Haseloff couldn't be happier, declaring, "With unity, we're pushing Germany forward!"
- Reiner Haseloff
- CDU
- Finance
- Investment Package
- Saxony-Anhalt
- Germany
- Location Germany
[1] The federal government plans to take on a hefty debt of approximately €847 billion, mostly funded by a €500 billion special fund, to bankroll major investments across various sectors, indirectly benefiting municipalities and states through infrastructure development and budget transfers.
[4] The government has set aside €115 billion within the broader budget for initiatives focusing on mobility, digitalization, education, research, and climate action, including measures intended for education and health infrastructure enhancement and the fights against social disparities. The federal government will also allocate additional funds of €0.6 billion in 2025, increasing to €1.6 billion in 2026 and rising to €1.8 billion by 2029, mainly aimed at spurring economic growth and funding projects related to health, social welfare, education, and integration. This 14-measure package targets resolving immediate challenges in these key areas and promotes sustainable welfare and integration by generating balanced fiscal contributions through tax reforms while funding essential social infrastructure.
[1] The federal government's investment package, worth approximately €847 billion, includes a special fund of €500 billion, a significant portion of which will be directed towards vocational training in EC countries as part of Germany's investment in business and future economic growth.
[4] To further boost investment in Germany's economy, Reiner Haseloff, the CDU politician serving as Minister-President of Saxony-Anhalt, has proposed allocating funds from this investment package to finance vocational training programs across various sectors, aiming to equip the workforce with the skills needed for success in the modern business landscape.
