Bund and states agree on financial reform.
The German government and state governments have made an agreement. The agreement helps cities with money problems. It is based on the idea that whoever asks for something, pays for it.
The agreement covers a new financial reform and a justice pact. It addresses problems with how cities are funded. The ‘Wer bestellt, bezahlt’ principle will be used. This means cities will receive financial support. The agreement is a step towards better cooperation between the government and the states.
Summarized from the sources above. Read the originals for the full story.
Highlights
Agreement on Financial Reform
The federal government and state governments agreed on a financial reform.
‘Whoever Orders, Pays’ Principle
The ‘Whoever orders, pays’ principle will be used.
Support for Municipalities
The reform aims to help municipalities with financial problems.
Justice Pact Included
The agreement also includes a new justice pact.
Shift in Cooperation
The agreement shows more cooperation between the government and states.