Household autonomy
Among household autonomy is understood that federal and state governments in their budget management independently and are independent. This follows from Article 109 of the Basic Law (GG).
Household autonomy is restricted in the following cases:
- The federal and state governments have to take into account the requirements of macroeconomic balance in their budgetary management . ( Art. 109 para. 2 GG)
- A federal law, which requires the approval of the Bundesrat , can establish principles for budget law , for budgetary management in line with the economic cycle and for multi-year financial planning ( Article 109.3 of the Basic Law). These regulations are set out in the Budget Principles Act (HGrG).
- In order to avert a disturbance of the macroeconomic equilibrium, federal law, which requires the approval of the Federal Council, can regulate
- Maximum amounts, conditions and timing of borrowing by local authorities and special-purpose associations and
- an obligation by the federal and state governments to maintain non-interest-bearing balances with the Deutsche Bundesbank ( economic adjustment reserves ),
- be enacted. Authorizations to issue statutory ordinances can only be granted to the federal government. The ordinances require the approval of the Bundesrat. They are to be repealed insofar as the Bundestag so requests; the details are determined by a federal law ( Article 109.4 of the Basic Law). These regulations are made in the Stability and Growth Act .
- Obligations of the Federal Republic of Germany from legal acts of the European Community on the basis of Article 104 of the EC Treaty to comply with budgetary discipline are to be met jointly by the federal and state governments. Sanctions by the European Community are borne by the federal government and the federal states in a ratio of 65 to 35. The state as a whole bears 35 percent of the burdens on the federal states according to their number of inhabitants; 65 percent of the burdens on the federal states are borne by the federal states in accordance with their contribution to the cause. The details are regulated by a federal law that requires the approval of the Bundesrat ( Article 109 (5) of the Basic Law). The law governing the domestic distribution of non-interest-bearing deposits and fines in accordance with Art. 104 of the Treaty establishing the European Community ( Sanctions Payment Distribution Act - SZAG) regulates further details .
