Germany’s Finance Minister Wolfgang Schäuble is not done tussling with regional state governments. His attempt to increase the central government’s say in their budgets is being rebuffed.
For two years, the federal chancellery and state governments have grappled over financial allocation policy. Mr. Schäuble had repeatedly submitted new proposals, but state governments have rejected them all. This Friday will be the latest sit-down to try to hammer out a deal.
At a critical meeting in mid-October, the contention seemed to be all said and done. Germany’s finance minister and the state premiers had agreed to a series of reforms which greatly favored state governments. However Mr. Schäuble did manage to push through a federal tax administration which had been discussed for years, and it was agreed thatthe federal government would be given a greater say in state use of their funds. But now Mr. Schäuble stands to lose even his consolation prizes.