The government of the German state of Bavaria decided Tuesday in a cabinet meeting to mount a legal challenge in a federal court against the financial aid it is obliged to pay to some of Germany‘s poorest regions.
The dispute has echoes of the resentment felt between poor Greek and rich Germans during the ongoing eurozone crisis, but this time the squabbling between rich and poor is an all-German affair.
Some of Germany‘s 16 states rely largely on handouts because their tax revenues are so feeble. Behind its glossy facades, the capital city-state of Berlin is the feeblest of all, drawing 3 billion euros (4 billion dollars) yearly in subsidies from the other 15 states.
Bavaria‘s government, comprising the conservative Christian Social Union (CSU) and the pro-business Free Democratic Party (FDP), will ask Germany‘s federal constitutional court later this year to declare that the current agreement on sharing tax revenues is unfair.
The case will add to the challenges Chancellor Angela Merkel faces as she struggles to prevent a collapse of the eurozone. She has repeatedly warned other eurozone nations that Germany‘s ability to help them is constrained by its federal and legal system.
Bavaria is upset that, last year, it paid 3.7 billion euros (4.5 billion dollars), more than any other state, into the transfer system, and accuses other states of squandering its wealth.
Advanced industries and banking have given Bavaria and two other southern states a commanding economic lead over the shabbier north, which is dogged by low incomes and high unemployment.
Horst Seehofer, the Bavarian premier, denied after the cabinet meeting that his state was showing a lack of solidarity.
"It‘s the transfer system which lacks solidarity," he said in a statement.
Opponents retorted that Bavaria itself had counted on such external aid while it remained a backward, largely rural state from the 1950s to the 1970s. It has only been a constant net contributor to the system of redistribution since 1993. dpa jbp ncs Author: Jean-Baptiste Piggin
http://en.europeonline-magazine.eu/bavaria-seeks-to-cut-its-cash-aid-to-lagging-german-regions_223349.html
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δεν ξέρω εάν τα προβλήματα της Βαυαρίας είναι αντίστοιχα της Φινλανδίας, όμως σε επόμενο βήμα - λογικά - θα έχουμε ένωση των δύο
The dispute has echoes of the resentment felt between poor Greek and rich Germans during the ongoing eurozone crisis, but this time the squabbling between rich and poor is an all-German affair.
Some of Germany‘s 16 states rely largely on handouts because their tax revenues are so feeble. Behind its glossy facades, the capital city-state of Berlin is the feeblest of all, drawing 3 billion euros (4 billion dollars) yearly in subsidies from the other 15 states.
Bavaria‘s government, comprising the conservative Christian Social Union (CSU) and the pro-business Free Democratic Party (FDP), will ask Germany‘s federal constitutional court later this year to declare that the current agreement on sharing tax revenues is unfair.
The case will add to the challenges Chancellor Angela Merkel faces as she struggles to prevent a collapse of the eurozone. She has repeatedly warned other eurozone nations that Germany‘s ability to help them is constrained by its federal and legal system.
Bavaria is upset that, last year, it paid 3.7 billion euros (4.5 billion dollars), more than any other state, into the transfer system, and accuses other states of squandering its wealth.
Advanced industries and banking have given Bavaria and two other southern states a commanding economic lead over the shabbier north, which is dogged by low incomes and high unemployment.
Horst Seehofer, the Bavarian premier, denied after the cabinet meeting that his state was showing a lack of solidarity.
"It‘s the transfer system which lacks solidarity," he said in a statement.
Opponents retorted that Bavaria itself had counted on such external aid while it remained a backward, largely rural state from the 1950s to the 1970s. It has only been a constant net contributor to the system of redistribution since 1993. dpa jbp ncs Author: Jean-Baptiste Piggin
http://en.europeonline-magazine.eu/bavaria-seeks-to-cut-its-cash-aid-to-lagging-german-regions_223349.html
_________________________________________________
δεν ξέρω εάν τα προβλήματα της Βαυαρίας είναι αντίστοιχα της Φινλανδίας, όμως σε επόμενο βήμα - λογικά - θα έχουμε ένωση των δύο
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