Bavaria failed with a proposal in the Federal Council, which expires at the end of the year lower VAT in the catering industry to be maintained permanently. A corresponding motion for a resolution, which would extend the lower tax rate of seven percent for food to drinks, did not find a majority in the state chamber on Friday.
During the pandemic, the tax rate on food in restaurants was reduced from 19 to seven percent. This measure to support restaurants was temporary. The planned return to the usual tax rate has been postponed several times. The traffic light coalition now insists that the tax rate rises again to 19 percent at the beginning of 2024.
Bavaria’s Prime Minister Markus Söder (CSU) warned in vain in the Federal Council of negative consequences for the catering industry: “Thousands of livelihoods are affected, throughout Germany.” If you want to save money, it’s better to do it elsewhere, such as with citizens’ money or the heating law. You could also postpone the planned expansion of the Chancellery “and instead give people cheaper and cheaper food,” said Söder.
Hospital Transparency Act
Federal Health Minister Karl Lauterbach (SPD) wants to introduce an online atlas on the services and treatment quality of hospitals in Germany. But the state chamber has put the brakes on this plan for the time being – and called the mediation committee.
The Baden-Württemberg Health Minister Manne Lucha (Greens) said that Lauterbach’s intention was correct. The way the law is currently designed, it does not create more transparency, but rather causes confusion. Several states also criticized interference with their sovereignty over hospital planning and called for additional financial aid from the federal government.
Lauterbach had once again campaigned for his law in the Federal Council. So far, it stipulates that from May 2024 onwards, a “transparency directory” should provide understandable information as an interactive portal about the respective offerings at 1,700 clinic locations nationwide. It should be clear which clinic offers which services. Data should be available on case numbers, i.e. treatment experience, staffing ratios for specialists and nursing staff, as well as complication rates for selected procedures.
New judge at the Federal Constitutional Court
The Federal Council has elected the former Federal Prosecutor General Peter Frank to the vacant position at Germany’s highest court. The CSU’s proposal was unanimously accepted, as Federal Council President Manuela Schwesig (SPD) announced after the vote.
Frank succeeds the former Saarland Prime Minister Peter Müller. He came to the Federal Constitutional Court in December 2011 and is reaching the end of his twelve-year term in office. Frank has been Federal Prosecutor General at the Federal Court of Justice since October 5, 2015 and thus head of the Federal Prosecutor’s Office. At the age of 47, he was the youngest Federal Prosecutor General when he took office. A focus of his work is the fight against terrorism. He previously worked as a public prosecutor in Munich and later for the Bavarian Ministry of Justice.
Growth package and basic child protection
At its meeting today, the Federal Council is also dealing with the Growth Opportunities Act and basic child welfare. The decisions are made against the background of the massive problems with the federal budget. After the Federal Constitutional Court declared the reallocation of 60 billion euros in the 2021 budget to be null and void last week, billions of euros for future projects are in jeopardy. The traffic light coalition wants to suspend the debt brake with an exception for 2023.
The Growth Opportunities Act provides for tax relief for companies of seven billion euros annually until 2028, which is intended to give the sluggish German economy new impetus. However, implementation will not begin so quickly anyway because the state chamber is calling the mediation committee on the law already passed by the Bundestag. The states criticize that they and the municipalities have to bear around two thirds of the costs of the law. This is overwhelming her.
The state chamber will probably initially only issue a statement on the controversial basic child protection on Friday. There has also been a question mark hanging over the billion-dollar project since the ruling from Karlsruhe. CDU leader Friedrich Merz has asked the traffic light to forego the social project.