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Füracker after ruling: Do not penalize states and municipalities

Albert Füracker (CSU), Bavarian Minister of Finance, makes a government statement in the Bavarian....aussiedlerbote.de
Albert Füracker (CSU), Bavarian Minister of Finance, makes a government statement in the Bavarian state parliament..aussiedlerbote.de

Füracker after ruling: Do not penalize states and municipalities

Following the ruling of the Federal Constitutional Court on the reallocation of federal funds, Bavaria's Finance Minister Albert Füracker (CSU) is insisting that the federal government keeps its financial promises to the federal states and local authorities. "We are issuing a clear and unequivocal rejection of any plans to make cuts at state level," Füracker told the Augsburger Allgemeine newspaper (Friday). States and municipalities should not be punished for the ideology-driven financial policy of the traffic light government.

"The preparation of the unconstitutional budget is solely a clear mistake on the part of the federal government," said the CSU politician. The government must now quickly explain which projects are affected by the ruling and how it will replace lost funds. Füracker warned the traffic light coalition against pursuing a "black box budget policy".

On Wednesday, the Federal Constitutional Court ruled that the use of coronavirus loans for climate projects was unconstitutional. The ruling tears a 60 billion euro hole in the financing of climate projects.

Following the Karlsruhe ruling, Federal Chancellor Olaf Scholz (SPD) said that the ruling may have an impact on budgetary practice not only at federal level, but also in the federal states. Finance Minister Christian Lindner (FDP) also said on Thursday that the ruling could "have an impact on budget policy at federal and state level in general".

In light of the ruling, states and municipalities should not face penalties due to the federal government's altered financial policy regarding climate projects. The Federal Government must clarify which projects will be affected by the court's judgment and propose appropriate replacement funding, avoiding a secretive budget approach.

Source: www.dpa.com

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