Bavaria is Tired of Supporting Subsidized Regions of Germany

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BB.LV
Publiation data: 23.01.2026 11:57

Старинный Берхтесгаден помнит исторических личностей.

The richest region demands a revision of borders.

Bavarian Prime Minister Markus Söder has once again raised a controversial topic — the unification of the federal states of Germany. He believes that the consolidation of regions will help make the country stronger and reduce financial disparities between donors and recipients.

The Bavarian premier stated that Germany needs larger and economically independent states. According to him, the current structure of 16 federal units is outdated and hinders development.

"Larger states are more successful than smaller ones," he emphasized during a CSU faction meeting at the Banz Monastery in Upper Franconia.

Bavaria intends to submit a proposal to the federal commission on federalism reform regarding the revision of regional borders. Söder did not specify particular unification options but indicated that economic sustainability would be a key criterion.

"We need equal players, not weak territories dependent on subsidies," he said.

Financial Motivation: Bavaria is Tired of Paying for Others

At the core of Söder's idea is a financial issue. Bavaria remains the largest donor in the Länderfinanzausgleich system — a mechanism that redistributes money between wealthy and poor regions. Berlin, on the other hand, is the main recipient.

The premier stressed that without reform, such a system has no future.

"If a new structure does not emerge, subsidies need to be reduced," he warned.

According to Söder, the unification of regions will help equalize economic potential and reduce the dependence of certain states on financial support from others.

What the Constitution Says

According to the Basic Law of Germany, the unification of states is permissible if it helps them perform their functions more effectively. The law also requires consideration of historical, cultural, and economic ties, as noted by br.de.

However, changing borders can only occur through federal law, which must be approved in referendums in the affected regions. Even if politicians reach an agreement, the final decision rests with the citizens.

Historical Context: Successful and Unsuccessful Attempts

In Germany's history, such a reform has only occurred once — in 1952, when the states of Baden, Württemberg-Baden, and Württemberg-Hohenzollern formed the current state of Baden-Württemberg.

An attempt to unite Berlin and Brandenburg in 1996 ended in failure. Although Berliners supported the idea, 62.7% of residents in neighboring Brandenburg voted against it.

Discussions about reducing the number of states flared up later as well. In 2009, former minister and head of the federalism commission Peter Struck (SPD) stated that in the future, "16 states in their current form will not be able to exist." At that time, Klaus Zimmermann, head of the German Institute for Economic Research (DIW), suggested limiting the number to 10 regions.

Söder Demands Greater Tax Autonomy

In addition to territorial changes, the Bavarian premier proposes expanding the tax powers of the states. He believes that states should independently regulate part of the taxes to enhance competition and motivate development.

In particular, Söder suggests:

granting states the right to independently set inheritance tax;
allowing changes to the income tax rate by 2% — either increasing or decreasing;
stimulating healthy competition between regions and increasing accountability for their own finances.

In his opinion, such reform will strengthen the federal system and provide regions with more opportunities for economic growth.

Prospects and Challenges

Söder himself acknowledges that the idea of unifying states will require "drilling through thick boards" — overcoming political resistance and bureaucratic barriers. He noted that such decisions are not made overnight. Nevertheless, the CSU leader is confident: the party has leverage, as many decisions in Berlin are impossible without its consent.

It remains unclear whether the initiative will find support in other states. However, the very fact that this topic is being discussed shows that Germany is once again faced with a choice between the traditional model of federalism and an attempt to make the system more flexible and modern.

Key factors being discussed:

Federalism reform — Söder's proposal to reduce the number of states.

Financial equalization — the mechanism for redistributing funds between regions.

Constitutional principle — the decision on merging is made through a referendum.

Tax autonomy — the idea of expanding the powers of states in the area of taxes.