Infrastructure policy related to cities
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Targeted Federal support for the structural development of cities
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Total volume of 433 mio €, of which
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92 mio € are earmarked fort he old Länder (2000: 41 mio €)
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265 mio € fort he new Länder (2000: 265 mio €)
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76 mio € earmarked for the programme ‚city districts with special need for renovation – the social city’
Federal budget for 2001623
|
1000 €
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% of the budget for East / West German Länder
|
Baden Württemberg
|
13519,9
|
14,7
|
Bavaria
|
15937,2
|
17,3
|
Berlin (East)
|
23413,2
|
8,8
|
Berlin (West)
|
4002,6
|
4,4
|
Brandenburg
|
44027,2
|
16,6
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Bremen
|
1240,0
|
1,4
|
Hamburg
|
2556,7
|
2,8
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Hesse
|
8265,1
|
8,9
|
Mecklenburg Western Pomerania
|
30387,3
|
11,4
|
Saxony__10607,2__11,5__North_Rhine_Westphalia'>Lower Saxony
|
10607,2
|
11,5
|
North Rhine Westphalia
|
24179,8
|
26,3
|
Rhineland Palatinate
|
5756,9
|
6,3
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Saarland
|
1567,9
|
1,7
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Saxony
|
79779,3
|
30,1
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Saxony Anhalt
|
46255,5
|
17,4
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Schleswig Holstein
|
4297,2
|
4,7
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Thuringia
|
41714,2
|
15,7
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Problems of the multilevel approach of German territorial policy -
Conflicts in view of subsidiarity
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Allocation of competencies and influence of the national level
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Social dialogue principle of the EU touches upon regional autonomy
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Reservations of the Länder
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Due to co-financing the financial power of the Länder is part of the regional policy
Funds ‚German Unification’ (Fonds Deutsche Einheit)
The Funds ‚German Unification’ (Fonds deutsche Einheit), since 1990 principally is a structural funds for the support of Eastern German Länder. De facto the funds represents financial transfers from the West to the Eastern German Länder. The West German Länder finance the funds with about 50% of their share in turnover tax plus an additional annual sum of 107.372.950,51 €.624
The fund is jointly financed by the Federal level, the Länder and the districts. It covers budgets that were not integrated into the public budgets of the Federal level and the Länder. They were thus part of the so called ‘side budget’. From 1990 to 1994 the funds was the most important instruments for supporting German unification with a final budget of 160 bio DM, which were supposed to cover the budget deficits of the East German Länder. The transfers were not assigned to special purposes, but in the beginning were meant to cover the deficits in the East German social security insurance (45% of the funds) and gap in tax revenue (by 27%). The federal level should support the funds with 20 bio DM (deriving from restructuring the Federal budget) and the rest of 95 bio DM should be funded by the West German Länder and districts by borrowing (with the credits being paid within 30 years). Bremen and Saarland did not have to contribute to the finds because of their own weak budget performance. Due to the high level of financial demands in the Eastern Länder, these Länder were in 1991 fully integrated into the German turnover tax distribution system. Since 1995 the East German Länder participate in the horizontal financial equalisation system.625
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