Cold progression, nationwide public transport ticket, refugees - when the heads of government of the federal states meet with Chancellor Olaf Scholz (SPD) this Tuesday, it's also about money.

Being determines consciousness, that applies here as so often in life.

"Although the states collect more taxes than the federal government, they haggle for every euro and demand that the federal government finance their very own tasks instead of doing their part to relieve the burden on the citizens.

For this reason, you unfortunately have to increasingly refer to them as federal states and no longer as states," said the budgetary spokesman for the FDP parliamentary group, Otto Fricke, of the FAZ

Manfred Schaefers

Business correspondent in Berlin.

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Baden-Württemberg's Finance Minister Danyal Bayaz (Greens) counters this with the words: "Our scope for action in the state is extremely limited, since most of our spending is fixed.

That doesn't make the work any easier when the federal government then makes specifications that tie us financially further."

Unlike the federal government, the federal states have currently generated a high surplus: according to official figures, it was around 23.6 billion euros at the end of August.

The federal government shows a financing deficit of around 86.2 billion euros for the first eight months.

Bayaz justifies the countries' surplus with economical budget management and the need to create reserves for local public transport and caring for the refugees.

Balanced state budgets only through federal debt?

But that doesn't convince Fricke.

Since 2020, the tax revenues of the states have been higher than that of the federal government, and this trend is continuing with a difference of over 20 billion euros more per year for the states, he argues.

Nevertheless, the federal government has largely borne the financial burden of the corona measures.

As a result, the core budgets of the federal states were already almost balanced again in 2021, in contrast to the federal budget.

For the year 2022 he expects a positive result.

"This clearly shows how the federal government uses debt to finance the balanced budgets of the federal states."

The Greens politician from Stuttgart does his own calculations: "According to our calculations, the third relief package alone will cost Baden-Württemberg at least 4 billion euros," he said.

Of course, the countries also benefited from inflation with rising tax revenues.

"Yet," he emphasized.

"Because in view of the looming recession, no one knows how long tax revenue will continue to rise." At the same time, the countries were suffering from inflation.

"We notice that, for example, in the energy costs of our 8,000 buildings and in the construction costs, which are running away from us."

strong shoulders

For Bayaz, there is no reason not to involve the federal government in the upcoming tasks, on the contrary.

"There is still no follow-up funding for non-Ukrainian refugees," he said.

The old rule expired earlier this year.

“We are at the capacity limit in the municipalities.

This directly affects us in the federal states and our municipalities.” He also sees the federal government as having an obligation to regulate the successor to the 9-euro ticket.

“If the federal government wants a cheap local transport ticket, it must also make a permanent and reliable contribution to the associated costs.

Otherwise it will be at the expense of the expansion of local public transport,” warns the Baden-Württemberg Minister of Finance.

“Then we have a cheap transport ticket, but we have to cancel trains.

Fricke, on the other hand, says: "In view of the permanently higher tax revenues and the predominantly positive development of the state budgets, I see no reason why these strong shoulders should not participate with an appropriate share in the third relief package." The federal government is not responsible for the tasks of the states , according to the federal constitution.

"Nevertheless, the federal government supports the federal states with a very rough estimate of over 70 billion euros per year," said Fricke.

According to an overview by the FDP parliamentary group, this includes full reimbursement of expenses for basic security in old age and in the event of reduced earning capacity (around 8.5 billion euros), participation in the costs of accommodation and heating (around 10 billion euros) and funds for local public transport (around 9.5 billion euros).

The FDP politician and the Green politician both dream of unbundling expenditure and tasks - albeit with different approaches: "In these difficult times, given the positive budget figures in the federal states, it would be necessary for them to take full financial responsibility for their core tasks again see for yourself,” said Fricke.

Bayaz also judged: "In federalism, we have to think more clearly about the separation of tasks, that means less mixed financing." But he still had to get rid of that: "Unfortunately, it has become common practice that the federal government feeds us with programs and one-off funds – and in the end we have to see how we can then permanently finance the new task.”