DÜSSELDORF (dpa) – North Rhine-Westphalia’s Prime Minister Hendrik Wüst (CDU) is seeking compensation from the federal goverment due to planned tax relief measures and the anticipated loss of income for both the state and its municipalities. According to Wüst, the principle of connexuality – “Whoever ordered, pays” – is enshrined in the coalition agreement between the Union and the SPD and should be applied in this situation.

“Of course we are approaching the federal government with the claim of a complete compensation,” said Wüst, referring to upcoming talks with Chancellor friedrich Merz (CDU) on wednesday. He expressed optimism that a 90 percent compensation might be possible.

Impending Mediation Committee?

Wüst voiced optimism about progress being made during the meeting with Merz. “I am good courage.” He emphasized the need for swift action, stating that an agreement must be reached before the Federal Council meeting on July 11th to allow the law to progress. “otherwise it ends up in the mediation committee.”

Together, Wüst commended the investment programme proposed by Federal Minister of finance Lars Klingbeil (SPD). The CDU politician stated, “Germany needs growth,” adding, “We are in the third year of recession.” He noted the unprecedented nature of three consecutive recession years in Germany, even during past crises like the oil crises and the COVID-19 pandemic.

The Federal Government’s proposed tax depreciation measures for companies are projected to disproportionately impact municipalities. Calculations suggest that the federal, state, and municipal governments could face a combined tax revenue shortfall of nearly 50 billion euros.

“Of course we are approaching the federal government with the claim of a complete compensation.”