Equalization Payments in Germany

The equalization payment transfer benefit in Germany is (As of 2012) * a mechanism for the redistribution of financial means between federation and states (Länder), * a mechanism for the redistribution of financial means between countries. Equalization payments is the most famous system for financial compensation in Germany. Its goal is to suitably even up the different financial clouts of the states. (Article 107, Paragraph 2, Sentence 1 of the German Grundgesetz.

Equalization Payments in Germany

The equalization payment transfer benefit in Germany is (As of 2012) * a mechanism for the redistribution of financial means between federation and states (Länder), * a mechanism for the redistribution of financial means between countries. Equalization payments is the most famous system for financial compensation in Germany. Its goal is to suitably even up the different financial clouts of the states. (Article 107, Paragraph 2, Sentence 1 of the German Grundgesetz.