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Germany’s Fiscal Equalization Climbs to €11.18 Billion as Bavaria’s Share Nears 60%

Record transfers intensify Bavaria’s constitutional challenge, with federal top-up legislation still awaiting action.

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Overview

  • The volume of the Länderfinanzausgleich reached €11.178 billion in the first half of 2025, up €1.35 billion year-on-year.
  • Bavaria contributed €6.672 billion, representing nearly 60 percent of total transfers and marking its highest share to date.
  • Berlin led recipient states with €2.028 billion, followed by Saxony at €1.919 billion and Thuringia at €1.161 billion.
  • Bavarian Minister Albert Füracker described the imbalance as “highly worrying,” demanding fundamental changes to the system’s structure to protect donor states.
  • A Union-SPD agreement envisages an annual €400 million federal supplement for donor states, with implementing legislation still pending.