Bavaria and Hesse premiers threaten to review fiscal equalization if Left Party leads Berlin government

Following the appearance of clan chief Issa Remmo at the Berlin Left Party's election party, Gregor Gysi has called on his party to draw clear lines: "This is unacceptable for us."

Bavaria's Minister President Markus Söder has threatened Berlin with financial consequences if a left-wing government takes power. Hesse's leader Boris Rhein has echoed the sentiment, stating: "No money for budget chaos-makers and extremists."

Hesse's Minister President Boris Rhein has backed the demand from Bavaria's Markus Söder (CSU) to restructure the fiscal equalization system (Länderfinanzausgleich) in the event of a Left Party takeover in Berlin. "Markus Söder is right: No taxpayer money for anti-Semites and left-wing extremists," the CDU state leader said in a party statement.

"We need a fair reorganization of the fiscal equalization system with incentives for performance instead of blanket transfers to budget chaos-makers and extremists," Rhein added.

Söder: No Money for "Anti-Semitic Leadership"

Söder had previously stated that if the Left Party actually leads the new state government in Berlin, the fiscal equalization system and the capital city contract would need to be renegotiated. "It cannot be that extremist politics, anti-democratic politics are still rewarded — and above all, anti-Semitic politics," the CSU leader emphasized during a closed-door meeting of the Bavarian CSU state parliamentary group. "It cannot be that the federal government pays endless money and we pay endless money so that we end up with an anti-Semitic leadership, where clan criminals attend parties."

The federal government and the state of Berlin agreed in mid-September that the capital would receive more federal funds for security and culture to fulfill its tasks. Söder said he wanted to "reopen" this contract if the Left Party continues to pursue the expropriation of housing companies. He also intends to speak again with other state leaders "about whether we can achieve a fundamental reorganization of the fiscal equalization system."

Background

• Bavaria is the largest of the few donor states in the fiscal equalization system and contributes more than half of the total sum to support financially weaker states like Berlin.
• Bavaria is also challenging the system with a lawsuit before the Federal Constitutional Court.
• Following the Left Party's election victory in Berlin, clan chief Issa Remmo and anti-Israel activist Ibrahim Ibrahim were seen at the party's election celebrations in the Neukölln district on Sunday.
• The Berlin Left Party is also facing accusations of failing to adequately address anti-Semitic statements within its ranks.
• Left Party top candidate Elif Eralp aims to become Governing Mayor. She is seeking a coalition with the Greens and SPD and intends to pursue her party's goal of expropriating large housing companies.

Reuters/dpa/shem/llo