• Germany's news in English
 
app_header_v3

Wealthy Bavaria gets €227 mln state payback

The Local · 26 Jun 2013, 12:27

Published: 26 Jun 2013 12:27 GMT+02:00

Ironically enough, Bavaria has led a recent campaign to kill off the system of Länderfinanzausgleich- state financial equalization - which redistributes some state tax revenue to smooth out differences between the nation's richer and poorer states.

Over the last few years, this has led to millions being shifted northwards to poor states such as Berlin. But the redistribution depends on population, and new figures have changed the picture.

The 2011 census numbers show there's been a considerably larger drop in the population of some states than others. As a result, states with much lower populations than expected are being asked to pay back money, while those with smaller relative losses - or even slight increases - are set to make monetary gains.

The money to be paid back relates to 2011 and 2012, while the 2013 funds are being allocated in line with the new population figures.

The biggest winner is Bavaria, long-term critic of the policy of state financial equalization, which is to get back €227 million, Rhineland-Palatinate (€203 million) and North Rhine-Westphalia (€130 million).

Berlin city state, on the other hand, will have to pay back €450 million, Baden-Württemberg €167 million, Hamburg €118 million and Saxony €9 million. All other states will receive more modest two-figure million sums back.

Story continues below…

The Local/kkf

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
This Week in History
75 years since one of Holocaust's worst massacres
Photo: DPA

On Thursday, German president Joachim Gauck spoke in Kiev 75 years after the Nazis slaughtered 33,771 Jews during one of the worst single massacres of the Holocaust.

Six things you need to know about troubled Deutsche Bank

Shares in Deutsche bank plunged on Friday morning, dragging down other European banks and markets worldwide. Here are six things to know about Germany's biggest lender.

Deutsche Bahn jacks up prices for first time in 3 years
Photo: DPA

Germany's main rail provider, the state-owned Deutsche Bahn (DB), announced on Friday that it will raise prices on long-distance train travel.

Baby found alive in suitcase with skeleton in Hanover
File photo: DPA.

A baby has been found alive, along with the skeleton of another infant inside of a suitcase in Hanover, police reported on Friday.

Morocco to speed up repatriation of illegal migrants
Photo: DPA

Morocco has agreed to streamline the procedures for the repatriation of citizens living illegally in Germany, the royal court said late on Thursday.

890,000 refugees arrived in Germany last year - not 1.1m
Photo: DPA

Previous reports had suggested that around 1.1 million people entered Germany to seek asylum last year. But now the German government has confirmed the number was actually lower.

Racist attacks cast cloud over Dresden Unity Day planning
A police vehicle in Dresden. Photo: DPA.

As Dresden prepares to host Germany’s national Unity Day celebrations on Monday, the capital of the eastern state of Saxony is upping security after a mosque was targeted by a homemade bomb.

Sinking Deutsche Bank stock sends shock across Europe
Photo: DPA

Shares in Germany's biggest lender Deutsche Bank plummeted on the Frankfurt stock market on Friday, dragging other European banks and global markets down with it, after reports some customers were pulling money out.

The Local List
10 things you never knew about German reunification
Reunification celebrations in Hanover in 2014. Photo: DPA

With German Unity Day (October 3rd) happening on Monday, Germans are looking forward to a three-day weekend. But did you know these facts about reunification and German Unity Day?

Munich pharmacy’s nighttime porno show draws crowd
Photo: DPA

When a police patrol in Munich's Sendlinger Tor area noticed a crowd gathered outside a pharmacy window they went to investigate. But the onlookers weren't interested in a new line of flu medicine.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Germany's 10 most Instagram-able places
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
15 pics that prove Germany is absolutely enchanting in autumn
Lifestyle
10 German films you have to watch before you die
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Retiring abroad: ensuring your health is covered
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
6,751
jobs available
Toytown Germany
Germany's English-speaking crowd