Schleswig-Holstein’s Minister President, Daniel Günther (CDU), is pressing for financial compensation for the states and municipalities during planned income tax reforms, noting that both levels of government could face tax revenue losses alongside the federal government.
Speaking to ARD on Sunday, Günther argued that it would not function if the federal level created relief measures and determined how they could be compensated for itself, while the states and municipalities continued to be burdened by rising expenses. He pointed to areas such as inclusion aid and the Federal Participation Act as factors driving up costs for regional and local authorities. Günther suggested that reforms in these specific areas could create financial breathing room necessary to absorb any losses from income tax changes. He stressed that the federal government must address both the tax reform and these growing cost drivers if they hope to maintain the support of the states.
Separately, Günther strongly criticized the discussions surrounding a possible shift in the Chancellery, labeling them “absurd” and “externally imposed”. Describing the talk as completely lacking factual basis, he expressed surprise that he had not been aware that a serious scenario regarding such a change was being discussed within the CDU. Furthermore, Günther did not find it problematic that nobody from the front rank of his party publicly aligned themselves with Federal Chancellor Friedrich Merz (CDU) for a long time. He maintained that if one begins commenting on such matters, it leads to further speculation and uncertainty. He concluded by stating that it was unhelpful that speculation originated from Merz’s circle, remarking that he could not imagine anyone being unwise enough to keep such a debate alive.
