State financial equalization: Bavaria pays almost ten billion – and threatens – Bavaria

Last year, the Free State of Bavaria paid almost ten billion euros into the financial power balancing of the states – and thus again well over half. This is the result of current calculations by the Bavarian Ministry of Finance. The state government is therefore preparing a new lawsuit as threatened.

“Bavaria is expected to shoulder well over half of the total compensation again in 2022, at over 9.8 billion euros,” Finance Minister Albert Füracker (CSU) told the German Press Agency on Thursday. According to initial estimates, the financial balance reached a new high in 2022. According to estimates, the total volume is around 18.5 billion euros – this sum was therefore redistributed within this equalization system between financially strong and financially weaker countries.

“Bavaria supports in solidarity, but solidarity and personal responsibility must be balanced,” said Füracker. When it comes to equalizing financial power, this balance is constantly and massively dwindling. It can’t go on like this. “We are therefore examining all the political and legal options available to us,” said the CSU politician. “A possible lawsuit before the Federal Constitutional Court is already being prepared.”

Prime Minister Markus Söder (CSU) and Füracker had recently repeatedly threatened a new lawsuit against the financial power equalization – formerly known as state financial equalization. Most recently, Söder had confirmed the plans at the Bundestag CSU retreat in Seeon.

According to the Ministry of Finance, Bavaria itself has received 3.4 billion euros in the early years since the federal financial equalization system came into existence. In the meantime, however, the Free State has paid more than 108 billion euros into the pot. The Free State is thus making a massive contribution to prosperity throughout Germany, it said.

In recent years, the Bavarian payments in the financial power equalization have continued to rise. In 2018 they were 6.67 billion euros, 2019 6.70 billion, 2020 around 7.77 billion and 2021 9.04 billion euros.

In 2013, Bavaria – together with Hesse – had already filed a lawsuit against the state financial equalization system at the time. However, the two states withdrew their lawsuit in 2017 after the financial relations between the federal and state governments had been reorganized.

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