Overview

• Berlin’s mayor Kai Wegner is making his city’s approval of the €500 billion relief package conditional on federal compensation to states.
• The planned reduction in gastronomy VAT from 19 % to 7 % is set to cost Berlin €100 million annually, prompting demands for revenue offsets.
• Wegner has called for a fundamental review of federal tasks and expenditures to rebalance financial responsibilities between Berlin and the federal government.
• He questioned the sustainability of the Deutschlandticket, warning that states can no longer afford its costs.
• A meeting between Chancellor Friedrich Merz and state leaders to discuss compensation and the relief package has been postponed pending a new date.