Bavaria’s Minister-President, Markus Söder of the CSU, has announced his intent to withdraw from the state financial equalization system, calling the existing arrangement an unfair mess. Söder told RTL and ntv that Bavaria will terminate this equalization agreement as soon as possible, possibly by 2029 or 2030. He stressed that it cannot be acceptable for taxpayer money from Bavaria to fund “extreme politics,” a comment seemingly directed at the Left party in Berlin, although he also hinted that states like Saxony-Anhalt, if they align with the AfD, could be affected. He asserted that the outcome will depend on whether the constitutional principles are respected.
According to law, the version of the state financial equalization system implemented since 2020 can be canceled if, after December 31, 2030, the Federal Government, the Bundestag, or a minimum of three states demand negotiations for a reorganization of federal financial relations, and no legislative restructuring is passed five years later.
Söder sharply criticized Berlin, claiming it is the primary beneficiary of the system, receiving over four billion euros. He further stated that Berlin has “received 100 billion times without ever contributing a single cent,” while simultaneously offering numerous services free of charge. He emphatically stated that Bavaria is not obligated to finance “socialist experiments.”
Regarding the planned cooperation between the SPD, the Green Party, and the Left Party in Berlin, Söder labeled it a “scandal.” He accused the Left party of tolerating “discernible antisemitism” and harbouring “expropriation fantasies.” He also insisted that the agreement for the capital city must be renegotiated, adding, “We will not accept a situation where more and more money flows into Berlin and we are constantly required to pay for it.”
