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> German states are soon constitutionally mandated to have a balanced budget, so this will end I think you have a misunderstanding here. A balanced budget mean
by germanier 10y ago
> German states are soon constitutionally mandated to have a balanced budget, so this will end
I think you have a misunderstanding here. A balanced budget means no new debt can be raised. It has nothing to do with redistribution of tax income. In fact, just a few months ago the states agreed on a new redistribution scheme up until at least 2030.
Redistribution between federal states has always been a thing, even under Bismarck. It's a vital part of federalism.
- tonfa 10y agoI'd say redistribution is vital if you're sharing a currency (because normal monetary policies will only work over the whole monetary zone, so you want a mechanism to keep the sub regions in sync) And that's why the Eurozone is currently not doing so well, we either need more redistribution (but the richest countries are kinda opposed to it) or we need to break it up somewhat.