asked the Minister for Finance if he favours the introduction of a budget equalisation system to improve the fiscal base of weaker states in the EC, similar to that which applies between the Laender within the Federal Republic of Germany.
Written Answers. - Budget Equalisation System.
30.
I would support the principle of a budget equalisation system to improve the fiscal base of weaker member states of the EC in the context of economic and monetary union. The system in Germany, to which the Deputy's question refers, is, however a very complex one which is geared specifically to the administrative structure in existence there and which, I understand, can give rise to protracted legal disputes between the Laender and Federal Government. That system might not, therefore, be the correct model for the EC assuming a budget equalisation system is agreed for the EC.