Stärkung der Eigenverantwortlichkeit von Städten und Gemeinden ist wichtiger als mehr Geld!

THE GLOBAL ECONOMIC CRISIS HAS LED TO SHRINKING REVENUES AT THE LOCAL LEVEL IN GERMANY. POLITICIANS ARE NOW DEBATING ON HOW THE EXISTING LOCAL FISCAL SYSTEM COULD BE REFORMED. THE ARTICLE IS DISCUSSING POSSIBLE CHANGES IN LOCAL PUBLIC TAXES AND IN THE SYSTEM OF GRANTS IN AID. FOR SEVERAL REASONS, IT WILL BE NECESSARY TO GIVE MORE TAX AUTONOMY TO THE LOCAL LEVEL. BUT IN ADDITION, ALSO THE SYSTEM OF GRANTS IN AID FROM THE STATE TO THE LOCAL LEVEL SHOULD BE CHANGED. FOR EXAMPLE, THERE SHOULD BE A SPECIAL NEW CATEGORY OF GRANTS FOR COMPENSATING THE LOCAL LEVEL FOR THE BURDENS WHICH ARE SHIFTED TO THEM BY THE DECISION MAKERS ON THE STATE AND THE FEDERAL OF GOVERNMENT. STATE HELP FOR MUNICIPALITIES WITH EXTREME HIGH BUDGET DEFICITS SHOULD ONLY BE GIVEN AS A LAST STEP, AFTER A NEW AND EFFICIENT SYSTEM OF LOCAL REVENUES HAS BEEN INTRODUCED.

31. May 2010

Authors Martin T. W. Rosenfeld

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