German election update
Upper house a big hurdle for the next government.
Commerzbank Economic Research
12/02/2024
Bundesrat as a further hurdle for many of the new government's laws
As the election campaign for next year's national elections on February 23 begins, the parties will be campaigning with their plans for getting the German economy back on track, among other things. Even if opinions differ widely, most of these plans have one thing in common: they must not only find a majority in Parliament (the Bundestag), but also in the Bundesrat, which is the representation of the states.
Laws that amend the constitution must even receive a 2/3 majority both in the Bundestag and in the Bundesrat. In addition, the Bundesrat must approve all laws that have an impact on the finances of the federal states, either by changing taxes in which the federal states and municipalities are involved (e.g. income tax and VAT) or by obliging them to provide goods or services. Approval is also required for all laws that interfere with the administrative sovereignty of the federal states by prescribing administrative procedures to be carried out by the federal states.
For full text see attached PDF-Version.
