Continuation in the Mediation Process: Agreement on Hospital Law Seems Imminent

The stalled negotiations over the federal government's growth package have reached a conciliatory turning point, particularly on the issue of healthcare. Representatives of the Bundestag and Bundesrat met for constructive discussions in the Conciliation Committee to advance the blocked legislation. Manuela Schwesig, the co-chair of the committee, clearly advocated for a joint solution. Following her words, FDP parliamentary group leader Christian Dürr also signaled his willingness to find compromises on contentious points. A first breakthrough was achieved in the area of hospital legislation. Health Minister Karl Lauterbach announced that following the resolution of differences, nothing stood in the way of a decision in the Bundesrat. The Transparency Act, which provides for an online platform detailing the quality and range of services at 1,700 clinics in Germany, can therefore start on schedule on May 1st. It also includes financial support for hospitals and a transformation fund for implementing a comprehensive reform of the hospital sector, with 50 billion euros earmarked over ten years. The dispute over the growth package was mainly due to the "Growth Opportunities Act" passed by the Bundestag. Tax relief for companies and the acceleration of approval procedures were at the centre of the debate, with the Bundesrat criticizing the cost issue. A rapprochement was achieved here by reducing the relief volume from seven to 3.2 billion euros, provided that the planned elimination of tax advantages in the agricultural sector is revised. Despite efforts to reach consensus, positions seemed entrenched before the meeting, as Finance Minister Christian Lindner also noted, calling for talks on corporate tax reform. The expectation on the part of the Union, represented by Hesse's Minister President Boris Rhein, was for an economic strengthening package in which the federal government was to play a key role. In the course of the conciliation procedure, a previously planned climate protection bonus was also discarded, which, according to Lindner, does not detract from the continued pursuit of this idea. Additionally, the law is to include tax incentives to boost housing construction and provide tax support to small and medium-sized enterprises in particular. Furthermore, an agreement on regulatory provisions for operators of certain working machinery was emerging, where motor vehicle liability insurance was to be spared to avoid EU penalties.