Bulletin n. 3/2008
February 2009
CONTENTS
  • Section A) The theory and practise of the federal states and multi-level systems of government
  • Section B) Global governance and international organizations
  • Section C) Regional integration processes
  • Section D) Federalism as a political idea
    • Jochimsen Beate
    Fiscal Federalism in Germany: Problems, Proposals and Chances for Fundamental Reforms
    in German Politics , Volume 17, Issue 4, December ,  2008 ,  541-558
    Determining the welfare maximising number of government layers and the optimal allocation of fiscal tasks to them is always a difficult question. In Germany, wrong incentives caused by the fiscal equalisation system and the consequences for budgets in severe financial distress pose only some of the economic problems within the fiscal system. Several proposals for the implementation of new fiscal rules are discussed in stage 2 of the federal reforms. However, taking political considerations and the restrictions of the existing system into account, the most likely results of the second reform stage will include solutions for only the most pressing problems, i.e. debt brakes and implementing rules for debt relief or consolidation aid. Consequently, reform necessities will remain even after the Föderalismusreform II.
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