Bavaria, Hesse Challenge German Fiscal Redistribution in Court
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The governments of Bavaria and Hesse, two of Germany’s richest states, filed a lawsuit at the country’s highest court in Karlsruhe today in an attempt to pay less to poorer regions.
The home states of companies including Bayerische Motoren Werke AG and Deutsche Bank AG are the two biggest per-capita contributors under Germany’s system of financial equalization. Together with Baden-Wuerttemberg, they raised 7.9 billion euros ($10.3 billion) last year for poorer states such as Berlin.