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Berlin Demands Compensation to Back Federal Relief Package

He says revenue losses from reduced gastronomy VAT require a fair financial balance with the federal government.

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Berlins Regierender Bürgermeister Kai Wegner knüpft die Zustimmung seines Landes zu dem vom Bund geplanten Entlastungspaket für die Wirtschaft an einen finanziellen Ausgleich für die Länder. Zweifel äußerte er am Fortbestand des Deutschlandtickets.
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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.