The debate surrounding potential state mergers in Germany, recently reignited by Bavarian Minister-President Markus Söder’s proposal aimed at cost-cutting, has met with a firm rebuke from his Hessian counterpart, Boris Rhein. Rhein, leader of the Christian Democratic Union (CDU) in Hesse, dismissed the merger suggestion as a recurring, ultimately fruitless distraction, comparing it to the mythical Loch Ness Monster.
While acknowledging the unique cultural, historical and traditional identities of each German state (“Land”), Rhein underscored the growing financial strain experienced even by relatively prosperous regions like Hesse. He stated that Hesse, despite its strong economic standing, is approaching its financial limits, highlighting the urgent need for reform in the system of financial equalization between states.
Rhein’s proposed solution centers on a significant overhaul of the “Länderfinanzausgleich”, the complex system governing financial transfers between German states. He advocates for a reduction in contributions from donor states (“Geberländer”) and the imposition of binding targets for recipient states (“Nehmerländer”). Critically, Rhein insists that future funding allocations must be directly linked to demonstrable progress in recipient states, specifically citing improvements in administrative efficiency and debt reduction.
The Hessian Minister-President also launched a pointed attack on existing agreements between the federal government and individual states, deriding them as unproductive “pacts”. He expressed a reluctance to further negotiate such arrangements, characterizing them as superficial gestures where the federal government dangles incentives – such as judicial positions, childcare subsidies and digitalization projects – with limited long-term impact.
To illustrate his argument, Rhein cited the “Pact for the Rule of Law” as a prime example. While the federal government finances judicial positions for just two years, the states are then obligated to cover the long-term costs of employing these judges as civil servants, a financial burden Rhein deems unsustainable. The example powerfully illustrates a broader concern: short-term federal initiatives leave states grappling with long-term and often unforeseen financial commitments.
Rhein’s rejection of state mergers and his stringent demands for reform of the “Länderfinanzausgleich” signal a growing tension within German federalism, indicative of a desire for a more equitable and sustainable distribution of financial responsibilities between the federal government and the individual states. His criticisms of existing agreements point to a deeper frustration with perceived federal micromanagement and a call for greater autonomy and accountability within the German system.
