Mediation Committee
Struggle for the growth package: no relent in sight
The Union only wants to agree to the law if the SPD, Greens and FDP waive the planned abolition of the tax break for agricultural diesel. photo
© Christoph Soeder/dpa
The Federal Council and Bundestag are fighting for tax aid for the ailing economy. They show little understanding for the arguments of others. Will there be a showdown in the mediation committee?
There is no agreement in sight in the struggle for the traffic light coalition’s growth package. Shortly before a meeting of the The mediation committee of the Bundestag and Bundesrat had hardened the fronts.
Finance Minister Christian Lindner (FDP) once again called on the Union to give up its block on the package with tax relief and accelerated approval procedures for companies. He was happy to talk about corporate tax reform, he said in response to a question from a Union MP in the Bundestag. “So that you can make this demand credibly, the Union should start by agreeing to the Growth Opportunities Act.”
The Federal Council blocked this law with the argument that the states would have to bear a large part of the costs. A compromise has already been developed in the mediation process that reduces the volume of relief from the previously planned seven billion euros annually to 3.2 billion euros. However, the Union-led states only want to agree to the law if the SPD, Greens and FDP waive the abolition of the tax relief for agricultural diesel for farmers, which the Bundestag has already decided on. The mediation committee should meet on Wednesday evening to reach an agreement.
Hesse’s Prime Minister Boris Rhein (CDU) told the German Press Agency: “We expect a strengthening package for the economy and agriculture. The federal government must become more committed to supporting the economy.” Economic policy is the responsibility of the federal government. The CSU MP Florian Oßner emphasized in the Bundestag: “We are happy to extend our hand to any cooperation. But it cannot be the case that one top performer is played off against the other top performers.”
What does the Growth Opportunities Act provide?
The Growth Opportunities Act provides for a number of tax reliefs for companies and an acceleration of approval procedures. It has already been “negotiated at a very modest level,” said Economics Minister Robert Habeck (Greens). It therefore doesn’t seem logical to him when the Union says: “We want more, but don’t agree to the little”.
During the mediation process, among other things, a bonus for investments in climate protection, which was originally considered the core of the law, was overturned. Lindner emphasized that the idea of such a bonus would be pursued further. “It appears that further work needs to be done to convince companies that such an instrument is particularly low-bureaucratic and predictable for companies. We will continue to make these efforts,” he said.
The law also includes tax incentives to stimulate struggling housing construction. To promote investments, a declining balance of depreciation should be introduced, which will make it easier for certain costs to be written off for tax purposes. Special depreciation is to be substantially improved for small and medium-sized companies.
Schwesig: “The economy is waiting for a signal”
Like Lindner, Mecklenburg-Western Pomerania’s Prime Minister Manuela Schwesig also called for a quick agreement. “In these times, we generally need the political signal that we can come to an agreement across all party lines,” said the SPD politician on Deutschlandfunk. “The economic situation is difficult and the economy in particular is waiting for a signal.” Schwesig is also chairwoman of the Mediation Committee and President of the Federal Council.
Mecklenburg-Western Pomerania considers the compromise proposal to be very good, said the Prime Minister. It is financeable and particularly helps the construction industry and small and medium-sized companies. She appealed to the other federal states to agree to this compromise and not to mix it with other issues. Schwesig emphasized that she could understand the Union’s request on the matter, but agricultural diesel was not part of the Growth Opportunities Act.
Employers demanded further steps to support the economy. “We need opportunities for growth outside of the Growth Opportunities Act,” said the managing director of the Confederation of German Employers’ Associations, Steffen Kampeter, in the ZDF “Morgenmagazin”. The law is just one of many construction sites, the economy is stuck in a traffic jam. What is needed is a “concerted action” between the federal and state governments as well as the government and the opposition.
Online atlas on the quality of treatment in hospitals
Also in the mediation process is a law with which Federal Health Minister Karl Lauterbach (SPD) wants to create an online atlas on the quality of treatment in hospitals in Germany. The Federal Council initially slowed down the “transparency directory” in November. It should be available there which clinic offers which services and what the treatment experience and staffing ratios are. The law also includes provisions for billions in additional liquidity for the clinics.
The FDP health politician Christine Aschenberg-Dugnus said that the law was a milestone for patient safety and an important contribution to the financial stabilization of the clinics. “That’s why it’s important that we finally get it through the door.” The current standstill is damaging both the clinics and the patients.
An agreement is expected in the committee on regulations that affect owners of ride-on lawnmowers, forklifts and other mobile work machines with a maximum speed of up to 20 kilometers per hour. According to dpa information, motor vehicle liability insurance will generally not be required for these machines in the future. At the beginning of February, the Federal Council made approval of the project dependent on such a change. Since the federal government wants to avoid fines that could result from the failure to implement an EU directive, it is keen to conclude the legislative process quickly.