German Federalism in Transition: Reforms in a Consensual State by Carolyn Rowe & Wade Jacoby
Author:Carolyn Rowe & Wade Jacoby [Rowe, Carolyn & Jacoby, Wade]
Language: eng
Format: epub
ISBN: 9781317966166
Amazon: B00G24W31M
Barnesnoble: B00G24W31M
Goodreads: 19632067
Publisher: Taylor & Francis
Published: 2013-10-18T00:00:00+00:00
Pure cosmetic reforms (Option 1) are highly unlikely because both large parties want the reform to succeed. Option 2 would include only solutions to the most pressing problems, i.e. debt brakes and implementing rules for debt relief or consolidation aid. Option 3 would contain some tax autonomy and flexible standards for the Länder to implement federal laws. Option 4 (fundamental reforms) could additionally consist of strong incentives for the merger of Länder. Furthermore, an insolvency right for Länder, instead of debt brakes, might be chosen to limit indebtedness.
As Germany is a very cooperative country where changes in the institutional framework develop slowly, it seems highly unlikely that fundamental or even progressive reforms will occur. The most likely result of reforms will lie in a range around Option 2. There will be some form of new debt limitations, some sort of early-warning system, and maybe some consolidation aid to poorer Länder. Anything less than Option 2 would be a clear failure in terms of economic requirements and political bargaining. The realisation of Option 3 would be an obvious success because it would include some truly innovative aspects like some tax autonomy and would be a visible step towards institutional symmetry and, hence, welfare maximising.
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