Business World

Monday 19 March 2018

Bavarian PM seeks reward before he'll support EU's fiscal compact

Thomas Molloy

Thomas Molloy

ENDA Kenny is not the only leader who wants a reward for backing the fiscal compact; Bavaria's state government wants the promise of federal cash from Berlin to build a Munich rail tunnel in exchange for ratifying the EU treaty in the upper house of the German parliament.

In a plea that mirrors the sort of deals struck by Independent TDs such as Jackie Healy-Rae or the late Tony Gregory, Bavarian Prime Minister Horst Seehofer said the government in Berlin should raise its transport budget by €1bn from this year to help projects including the Munich tunnel.

"We don't want any extra sausage rations for Bavaria, but if the states had €1bn more that would mean €150m each year for Bavaria," Mr Seehofer said.


Mr Seehofer belongs to the CSU party, which is a more conservative version of Chancellor Angela Merkel's CDU party. Mrs Merkel needs the CSU's support in the upper house of the German parliament -- which represents the interests of the various German states -- if she is to pass the fiscal compact.

Bavaria is Germany's richest state and often resembles the role that Kerry plays in Irish life. Politics can be a rough and ready sport in Bavaria, where politicians from all parties must be able to address a rowdy beer hall to have any chance of electoral success.

Both regions are rural, proudly independent and like to style themselves as kingdoms. Despite their distance from their respective capitals, the regions are also wealthy industrial and economic powerhouses. Kerry has global champions such as Kerry Group and Fexco; while Bavaria , has champions such as BMW and Siemens.

Euro crisis, Page 3

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