Every year, Germany's richest states, mainly in the south and west, pay billions of euros to keep cash-strapped eastern regions afloat in a system known as the Länderfinanzausgleich (state fiscal equalization scheme). In 2017 that sum was larger than ever, rising 5.3% on the previous year to hit a record €11.2 billion, the Federal Finance Ministry announced on Thursday. Meanwhile, rich relation Bavaria contributed the most to the pot, coughing up a net contribution of €5.89 billion. Wealthy states Baden-Württemberg and Hesse helped shoulder the burden, with contributions of €2.8 billion and €2.5 billion. The current system of financial distribution between Germany's sixteen federal states is set to end next year.

Source: The Local March 22, 2018 09:56 UTC