Exhaust scandal: Federal states dispute over distribution of the VW billion

VW paid a billion fine to Lower Saxony. Some countries find that, because damage was caused by the diesel scandal nationwide, the money had to go to everyone.

Exhaust scandal: Federal states dispute over distribution of the VW billion

The billion-dollar fine of VW for exhaust gas manipulation has now been received by Lower Saxon Treasury. However, federal states are still divided about how money should now be distributed. While finance ministers of countries of Hesse and Schleswig-Holstein support a nationwide distribution, this is rejected by Free State of Bavaria. The sentence had been imposed by prosecutor's Office in Brunswick for breach in exhaust scandal.

In Munich, Finance Minister Albert Füracker (CSU) said: "Of course, any additional funds are at your disposal. But question of who is entitled to money is clearly regulated by Basic Law and Financial Compensation Act, that is, a question of law and not a question of decency. " Hamburg's financial senator, Andreas Dressel (SPD), also argued against changing cash flows in country, depending on individual case.

Baden-Württemberg's Ministry of Finance also shared that distribution of fine games in financial settlement was irrelevant. "They will benefit country in which y are imposed. If this were to be changed, financial constitution would have to be amended accordingly, "said a spokeswoman for Minister Edith Zimmermann (Greens).

"Cases like that of VW are of national importance"

Hesse's Finance Minister Thomas Schäfer (CDU) argues, however, that practices of car manufacturer have done damage nationwide. So that not only Lower Saxony will be only beneficiary of VW-billion, a compensation compensation should be developed, said current Vice-Chairman of Regional Conference of Ministers.

"Countries and municipalities have to worry even more about clean air in whole Republic because of emissions scandals: cases like that of VW are of national importance," Schäfer said. He referred to earlier cases, to which he had already raised similar demands. "Fines imposed on banks have so far remained with individual countries – even if banks helped customers throughout Germany in tax evasion." The good cooperation between authorities across national borders should not end with money.

Schleswig-Holstein's finance minister, Monika Heinold of Greens, also pleaded for benefit of money not only for Lower Saxony but for all countries. "The decency would be to make money available nationwide to all concerned," she said to Lübeck news. Orwise, whole thing would be a piece out of madhouse and place federalism upside down. "Lower Saxony does not know where to go with billion, while municipalities are laboriously looking for money for implementation of air clean-up plans nationwide."

Heinold has no understanding, according to his own data, if VW could claim penalty tax: "Should VW be able to deduct penalty from tax at expense of all federal states now, this would definitely knock bottom out of barrel."

Volkswagen and public Prosecutor's office Braunschweig had announced last week that company is paying a billion euros in fines for diesel affair in Germany. The money went to state coffers of Lower Saxony on Monday. To be used, state government in Hanover intends to "submit a proposal in context of budget discussions".

Date Of Update: 22 June 2018, 12:02

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