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Germany's 16 states cancel €1,000 public-sector bonus amid financial strain

Austerity wins over relief as all 16 German states unite to block the bonus. Minister-President Voigt warns of deeper financial cracks in both government and business.

The image shows an old German banknote with a black background. The paper has text written on it,...
The image shows an old German banknote with a black background. The paper has text written on it, which reads "Rudolph Karlstadt Aktiengesellschaft Hamburg".

Germany's 16 states cancel €1,000 public-sector bonus amid financial strain

Public-sector employees in Germany's federal states will not receive the €1,000 bonus that had been proposed.

"Here in Thuringia, after extensive coordination with the other states, all 16 federal states have decided not to pay it—and ultimately to forgo it," Thuringia's Minister-President Mario Voigt (CDU) told RTL and ntv on Monday. "In this economic climate, we all have to stand together, and that's what we're doing." He argued it was difficult to justify asking taxpayers—those who generate the revenue that keeps the state running—to foot the bill when the government itself could not. "The state must exercise restraint in this case."

Voigt, a CDU politician, criticized the idea of shifting the burden of citizen relief onto businesses. "The €1,000 bonus clashes with the reality faced by Thuringia's small and medium-sized enterprises and skilled trades—it's simply unaffordable for them. What was meant as relief has turned into a strain." He noted that financial reserves had been exhausted, adding that after discussions with local businesses in his state, "they can't pay it. And of course, that's something weighing heavily on many people's minds."

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