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Financial equalization: millions for eastern German states

Year after year, the so-called equalization of financial power climbs to new record levels. (Symbolic image) / Photo: Jens Büttner/dpa-Zentralbild/dpa
Year after year, the so-called equalization of financial power climbs to new record levels. (Symbolic image) / Photo: Jens Büttner/dpa-Zentralbild/dpa

The financial equalization between the federal states is intended to prevent the gap between rich and poor countries from widening. This is how much money flowed into the local region recently.

Saxony, Saxony-Anhalt and Thuringia continue to benefit from the financial equalization of the federal states. Last year, Saxony received around 3.5 billion euros, Thuringia around 2.2 billion euros and Saxony-Anhalt around 1.9 billion euros. This is the result of an initial calculation by the Bavarian Ministry of Finance, which is available to the German Press Agency. Compared with figures from the Federal Ministry of Finance for 2024, these are increases for all three states.

Federal state financial equalization has grown to around 20 billion euros

In total, the federal state financial equalization increased to around 20 billion euros last year. Bavaria was once again by far the largest contributor with almost 60 percent - around 11.7 billion euros. According to the calculations, more than 14 billion euros went to East Germany and Berlin.

In addition to Bavaria, Baden-Württemberg and Hesse made the largest payments as donor states - around four billion euros each, with Hamburg contributing around 330 million euros as the fourth contributor. The four donor states are offset by twelve recipient states, of which Berlin receives the largest share with around 4.2 billion euros.

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