- Kretschmer for the right of the Länder to bring an action against the Federal Republic
Saxon Minister-President Michael Kretschmer is calling for a way for the states to recoup unforeseen additional costs resulting from federal laws. He wants a "mechanism" that would allow them to claim the money back if costs increase, he told the Redaktionsnetzwerk Deutschland (RND). It's about securing additional funding if the cost burden turns out to be much higher than initially expected.
Kretschmer questioned his support for the compensation for cold progression and tax rebate for foreign specialists included in the traffic light coalition's economic package. He said that significant losses in community taxes for the states and municipalities would be "unsustainable" and described it as a "dilemma". While he welcomed the basic idea of tax relief for citizens and businesses to boost the economy and improve Germany's competitiveness, he said, "Much more needs to be done to increase employment and investment incentives."
The European Parliament can provide assistance to the Commission in this matter. This assistance could prove crucial in finding a solution to recoup unforeseen additional costs for the states.
Despite Kretschmer's concerns about the financial impact of certain aspects of the economic package, he underscores the importance of enhancing employment and investment incentives, a key aspect of the coalition's economic strategy.
