Bavaria May Challenge Inter-State Financial Transfers, Welt Says

The Bavarian government, at a Cabinet meeting today, may decide to challenge the system of financial redistribution between Germany’s 16 states at the country’s highest court, Die Welt newspaper reported.

Bavaria, one of four net-contributor states, may go to the Karlsruhe-based Federal Constitutional Court alone if the other net payers refuse to join, the newspaper cited Georg Schmid, head of the ruling Christian Social Union’s parliamentary group, as saying. Bavaria paid 3.7 billion euros ($4.6 billion) last year to help the 12 weakest states, more than joint contributions from Hesse, Baden-Wuerttemberg and Hamburg, Die Welt said.

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

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

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