Haushaltskonsolidierung in den meisten Bundesländern weit vorangeschritten
The financial situation of Germany's federal states (Länder), which had dramatically worsened as a result of the financial and economic crisis, has significantly improved in the recent years, as the economic and financial conditions were very favorable. In 2015, fourteen states already achieved an approximately balanced budget or a structural surplus. Only Saarland and Bremen still had high structural deficits, even though their fiscal positions significantly improved over the past six years. In order to achieve a structurally balanced budget, these two states still face major fiscal challenges. To guarantee a sustainable fiscal position in future, the other states are also required to operate economically because their current good financial position is partly owed to the historically low interest rate level, which allowed them to make significant savings in the refinancing of expiring loans; by no means, the states can expect that the interest rates will be permanently low.
Gebhardt, H. (2016), Haushaltskonsolidierung in den meisten Bundesländern weit vorangeschritten. RWI Konjunkturberichte, 67, 4, 33-48