Grüne on finance and taxes

The Greens stand by the basic idea of the Schuldenbremse (debt brake) but want to change it: loans for investment in infrastructure and climate protection should be allowed with a fixed repayment plan. In their view, failing to invest also burdens future generations.

The debt brake limits new government debt. The Greens want to change this rule. The state should be allowed to borrow for roads, rail, buildings and climate protection. There should be a fixed plan for paying the money back. The state should still pay its day-to-day costs from its income.

Earmarked loans are to top up the Climate and Transformation Fund to finance more climate protection and climate adaptation. Until the Basic Law is amended, the Greens want to make full use of the existing constitutional leeway. They mention public investment companies, funding programs through the state-owned WIBank, and investment funds with private capital participating.

The Greens want to keep guaranteeing municipalities the money for tasks delegated to them and to further develop the municipal fiscal equalization system. Tax revenue is to be shared fairly between the state and municipalities and among municipalities.

Cities and towns need enough money for their tasks. The Greens want to keep promising them this money. Tax income should be shared fairly. This applies between the state and the towns. It also applies among the towns themselves.

For voluntary tasks, municipalities are to receive revenue sources that they manage themselves. The platform argues that only well-funded municipalities can shape climate policy, digitalization, social balance and fair access to education. In the Greens' view, volunteer local politics should not be limited to debates about cuts.

The Greens want to align the state's budget, investments and shareholdings with climate and sustainability goals and to cut climate-damaging subsidies. Frankfurt is to become a European hub for sustainable finance.

The state should consider climate and the environment when handling its money. Subsidies that harm the climate should be reduced. The state should invest its money sustainably. The Greens also want to check how the budget affects women and men. Frankfurt should become an important place for sustainable finance.

The state's investment strategy is to stay oriented toward the 1.5-degree target, and green bonds will continue to be issued. For state holdings in companies, the contribution to the UN Sustainable Development Goals is to be a key steering criterion. The public mandate of the Sparkassen (public savings banks) is to gain a sustainability element, and the budget is to be reviewed for gender equity (gender budgeting). Through the Green and Sustainable Finance Cluster Germany in Frankfurt, the Greens want to steer more public and private capital into sustainable investment and help shape the federal sustainable finance strategy.

The Greens want to fight tax fraud and reduce opportunities for tax avoidance. To do so, the tax administration is to be better equipped and efforts against money laundering strengthened.

The Greens want to act against tax fraud. There should be fewer ways to avoid taxes. Tax offices should become more modern and digital. Money laundering should be fought harder. Money laundering means criminals hide where their money comes from.

The tax administration is to get digital structures and become more transparent and citizen-friendly so that tax crime is pursued more effectively and quickly. To uncover the money flows of organized crime, the Greens want to strengthen anti-money-laundering efforts. They are campaigning to have the new European anti-money-laundering authority based in Frankfurt. Because of Frankfurt's role as a financial center, the platform also sees Hesse as obliged to fight financial crime and foreign financing of extremism together with other EU countries.