Federal government insists on controls for expansion of daycare facilities

Federal government insists on controls for expansion of daycare facilities

Everyone sees themselves as winners."What is not possible and what we will not allow to pass is that the states collect without investing," said the parliamentary secretary of state in the ministry of finance, steffen kampeter (CDU), in the bundestag in berlin on friday. "Here we will be looking very closely to see if the additional funds are actually being used there."Family minister kristina schroder (CDU) also called for transparency and rejected the state’s accusation of excessive reporting requirements.

The federal government will provide the states with around 580.5 million euros for 30,000 additional places for children under the age of three. This was demanded by the federal states in return for their agreement to the european fiscal pact for greater budgetary discipline. The additional funds are one reason for the coalition’s second supplementary budget for 2012, which was debated for the first time in the bundestag on thursday.

The background to this is that parents of children in their second and third year of life from 1. The children will have a legal right to childcare – either in a daycare center or with a state-paid daycare provider – from august 1, 2013. However, 130,000 childcare places are still needed to meet the legal requirement. A wave of lawsuits from rejected parents is feared. The 580 million euros are to be used to demand additional places, which were set up from july 2012, with retroactive effect.

Peter friedrich (SPD), minister of the baden-wurttemberg federal council, warned that the reporting requirements must not "make the sobe more expensive than the roast". The federal government is demanding controls that go far beyond what makes sense. A functioning rule is necessary.

Schroder emphasized that the federal government and the federal states had already agreed in august on the distribution of the 580 million euros as well as on the terms of the demand. During the negotiations, it was very important to the federal states that the money not be distributed according to the mabstab, where most of the places are currently still missing. Instead, the states had insisted on a distribution based on the number of children under the age of three. The federal government has agreed to this, but has also set conditions based on experience to date.

"We want new daycare places to be created where families need them," said schroder. A distribution in line with requirements could also mean that funds unused up to a certain date would then go to other states that urgently needed the funds. In addition, everyone must be able to know where and how many places are missing, how many are under construction and how high the state’s own contribution is: "this is not bureaucracy, this is a matter of course."

The draft supplementary budget also includes a provision of 312 million euros for the new capital city airport, so that the federal government can cover the capital requirements with the approval of the budget holders together with the other shareholders berlin and brandenburg. Finally, the german share of 1.6 billion euros in the capital increase of the european investment bank (EIB) is to be covered.

Despite the additional spending of around 2.2 billion euros, the new debt planned for this year remains at 32.1 billion euros. Because the federal government’s interest costs will be saved at the same rate as the additional expenditure.

The bill to implement the requirements of the already approved fiscal pact was also debated for the first time. Thus, the upper limit for the structural deficit adjusted for cyclical and one-time effects of 0.5 percent of economic output is fixed. Their compliance is monitored by a stability council, which is supported by an independent advisory board. The distribution of penalties between the levels of government in the event of deficit violations will be reorganized.

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