Corona-crisis: government approves billions in relief for municipalities

The municipalities should be relieved of the Coronavirus pandemic financially. A decision by the Federal Cabinet decided on Wednesday in Berlin. He still requir

Corona-crisis: government approves billions in relief for municipalities

The municipalities should be relieved of the Coronavirus pandemic financially. A decision by the Federal Cabinet decided on Wednesday in Berlin. He still requires the approval of the Bundestag and the Bundesrat.

The municipalities are also economically important because they provided the largest part of public investment, said German Finance Minister Olaf Scholz (SPD). "We have therefore decided to strengthen the municipalities." The CDU, CSU and SPD had agreed on the projects already in the coalition Committee at the beginning of June.

support for business tax

the Federal government wants to replace the municipalities, half of the revenue from the trade tax. Calculation basis for the forecasts in the may tax estimate. For the payout of the countries should be responsible. In total, the communities received, according to the Federal Ministry of Finance in the current year, a lump-sum compensation of around 11.8 billion euros.

The Federal government wants to take over, also, in the future, up to 74 percent of the costs for accommodation and heating, for job-seekers, the basic security related. This corresponds to an increase of a quarter or a year, 3.4 billion Euro.

Finally, the Federal government increases its share of the reimbursements for the expenses of the pension from the supplementary pension systems of the former GDR. The basis of the claim and entitlement transfer act (AAÜG) is. The Federal government wants to increase its share by 10 percentage points to 50 percent, which means a discharge of the households in the new countries of about 340 million euros annually.

Updated Date: 24 June 2020, 11:20

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