Kommunale Konsolidierungshilfen der Länder – Fass ohne Boden oder alternativlose Maßnahmen zur Standortrettung?

Abstract

Abstract Municipality budgets in Germany finished the fiscal year 2013 in total with a surplus of 1.7 bn euro. In addition, the current year their overall budget will conclude with a surplus. However, there are huge differences in the situation of local budgets. Numerous local authorities have serious problems to balance their budget due to structurally overburden expenditures and due to outstanding large dept levels, especially in terms of “Cash Credits”. The Länder have started to set up different bail out mechanisms because they are responsible for the financial reliability of their local authorities. Generally spoken, there are good reasons for such bail out programs. However, they should be organized in such a way, that the tax wedge on trade (Gewerbesteuer) and property (Grundsteuer) does not increase continuously. But also there is already data indicating such as development. A rising tax burden, however, weakens the position of our companies in global competition. Therefore, the programs have to be evaluated on a scientific basis. In some cases, they have to be adapted. Budget authorities should focus more on cutting expenses because it usually is the best way to ease the budgetary situation sustainably. At the same time, it helps to avoid rising multipliers in impersonal taxes.