Bavaria Wants Cash for Fiscal-Pact Support, Sueddeutsche Says

Bavaria’s state government wants German federal cash to build a rail tunnel in Munich in exchange for agreeing to ratify the European fiscal pact in the upper house of parliament, the Sueddeutsche Zeitung reported.

In an interview with the newspaper, Bavarian Prime Minister Horst Seehofer said the federal government should raise its transport budget by 1 billion euros ($1.3 billion) starting in 2012, helping projects that include building the Munich tunnel.

“We don’t want any extra sausage rations for Bavaria, but if the states had 1 billion euros more that would mean 150 million euros each year for Bavaria,” Seehofer told the newspaper.

Chancellor Angela Merkel needs the support of Germany’s states in the upper house to ratify the fiscal pact, which may be voted on in the chamber on June 29 or July 6.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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