Financial relief: municipalities in concern about billions of losses!

Financial relief: municipalities in concern about billions of losses!

Today is hotly discussed in Hesse: At a conference that deals with the Federal Government's finances and the new relief package of the Federal Government, there are many open questions. As the Hr-Info , the main goal of the relief package is to miss the economy. But as positive as this sounds, the concerns of the countries and municipalities cannot be dismissed. Many fear massive absorption losses in billions of bills.

The round of talks is prominently occupied: Among other things, Markus Röder, the non-party mayor of Hofbieber and President of the Hessian Cities and Community Association, as well as Dr. Philipp Rottwilm from the SPD, which works on the Finance Committee of the Bundestag and is also strong for construction, living and urban development. Together, the participants want to discuss the possible negative effects of the relief package.

The relief package in detail

Federal Finance policy has introduced many measures in recent years to relieve the municipalities financially. This is how it sees The Federal Finance Ministry before: Flow 5 billion euros annually to strengthen the financial strength of the municipalities. This sum comes into being in the sales tax and a higher participation of the federal government by raising the country and municipal share in the accommodation costs.

It is also particularly important to complete the full reimbursement of expenses for basic security in old age and in the case of reduced earning capacity, which is estimated for 2024 with 10.9 billion euros in the federal budget. Participation in the costs for accommodation and heating is also expected to increase to 11.1 billion euros in 2024. In this context, it is crucial that the cities and municipalities are well positioned to master the upcoming challenges.

A look at electromobility

In the context of the relief package, promoting electromobility also plays a central role. The Sparkasse indicates that companies can write down 75 percent of the purchase price of operational electric vehicles in the first year. For example, buying an electric car for 40,000 euros is possible to remove 30,000 euros in the first year.

With this measure, not only e-mobility is to be promoted, but also the location of Germany is to be strengthened. Vehicles up to a price of 100,000 euros are affected by these regulations, which creates an incentive for companies to invest in greener technology. This is a positive development that also benefits the municipalities.

In a time when the requirements for the municipalities are steadily increasing and financial worries are great, it remains to be seen how the current discussion about the relief package will be. However, it is clear that many hope for a solution that benefits the municipalities and the citizens and at the same time promotes economic stability. The exchange at today's conference is an important step to address these challenges.