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Who wins from the planned federalism reform?

Margret Wintermantel, Hans-Peter Schneider, Peter Struck, Wolfgang Bosbach, Joachim Wieland
ifo Institut für Wirtschaftsforschung, München, 2006

ifo Schnelldienst, 2006, 59, Nr. 10, 03-16

Federalism reform in Germany is intended to disentangle the responsibilities of the federal government and the states and to guarantee more transparency. Who are the winners and who are the losers of the planned change? Margret Wintermantel, president of the Conference of University Rectors, fears that the universities could be the losers of the federalism reform: "If the federalism reform proposed in the coalition contract is implement as planned, this would mean disadvantages for the German universities." Also Hans-Peter Schneider, University of Hanover, sees not only winners but also losers. For him the advantages and disadvantages of the reform are not unambiguously distributed. For Peter Struck, SPD Bundestag parliamentary party, on the other hand, the reform aims are reached in the proposal stronger separation of competence, abolition of framework legislation, reducing the number of laws that need the approval of the second chamber and reorganisation of the financial responsibility of the federal government and the states especially vis-à-vis the EU so that the federal government, the states and also the citizens are the winners of the reform. This opinion is also shared by Wolfgang Bosbach, CDU/CSU Bundestag parliamentary party. For him the list of those that are to be counted as the winners of the reform is "indeed large", while Joachim Wieland, University of Frankfurt, has also identified the losers: "The losers of the reform will be the minister presidents of the states and their governments. The Bundesrat will no longer serve as a stage for them as often as it does presently."

JEL Classification: H000,H770

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ifo Institut für Wirtschaftsforschung, München, 2006