Politics

Population decline burdens federal states: Berlin and Hamburg most affected

Local politics: Census changes financial situation in various federal states

The results of the 2022 census have a significant impact on the finances of various Federal statesWhile Bremen can look forward to an improvement in its finances, other states have to accept losses.

A study by the Ifo Institute found that Berlin is the biggest loser with 129 euros less per inhabitant. Mecklenburg-Western Pomerania records a loss of 107 euros and Hamburg of 103 euros per inhabitant. These losses are due to the correction of the population figures by the census.

The census showed that there are about 1.4 million fewer people living in Germany than previously assumed. Since population numbers play a role in calculating the fiscal equalization between the states, falling population numbers lead to greater financial losses.

These results highlight the importance of accurate population statistics for the distribution of financial resources between the federal states. While Bremen benefits from an improved financial situation, other states must consider measures to compensate for the losses.

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Source: nachrichten.ag

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