Policy Article

Welcher Länderschlüssel passt? – Zur Aufteilung des Fiskalpakets auf die Länder

Authors

  • Boysen-Hogrefe
  • Jens
Publication Date

• Larger states are likely to receive billions in allocations and credit leeway.

• The state allocation key should be transparent and understandable. Orientation towards existing keys seems appropriate.

• For infrastructure funding, the population size is a suitable guideline.

• Additional structural borrowing should be assessed differently than the infrastructure funds financed by the federal government.

• When determining the allocation key for structural borrowing, the financial strength of the respective state should be taken into account.

Kiel Institute Expert

Info

Key Words

  • German states
  • constitutional amendment
  • special funds
  • structural net borrowing