Saxony’s Minister President Michael Kretschmer (CDU) has called for talks on a financial pact for local governments to be held at the highest level. “They must not continue to take place at the staff level; ministers and state secretaries need to be at the table,” Kretschmer told the German Press Agency in Dresden.
The “whoever orders, pays” rule will apply from now on
On Thursday evening, the federal and state governments agreed on a financial reform aimed primarily at easing the burden on municipalities. The agreement now reached follows the rule: “Whoever orders, pays.” The CDU, CSU, and SPD at the federal level had agreed in the coalition agreement to be guided by the principle of “causal connection.” A restructuring of federal-state finances has been under discussion for months.
