Law to promote the stability and growth of the economy

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StabG

Date of completion: 08.06.1967

Full quote:

" The Law on the Promotion of Stability and Growth of the Economy of 8 June 1967 (BGBl. 582), as last amended by Article 135 of the Regulation of 31 December 2008. October 2006 (BGBl. 2407). "

Status:

Last amended by Art. 135 V v. 31.10.2006 I 2407

For more details, please refer to the menu under Notes

Footnote

(+ + + Text proof applicable: 21.3.1975 + + +) 

  

The law is in accordance with. Section 1 (1) No. 6 G 114-5 of 25.3.1974 I 769 as adopted on 15.6.1967 Unofficial table of contents

Input formula

With the approval of the Federal Council, the Bundestag has adopted the following law: Unofficial table of contents

§ 1

In their economic and financial policies, the Federation and the Länder have to comply with the requirements of the macroeconomic balance. Whereas the measures should be taken in such a way as to ensure, within the framework of the market economy, at the same time the stability of the price level, the high level of employment and the external balance of the economy in the event of a continuous and appropriate balance of Economic growth. Unofficial table of contents

§ 2

(1) The Federal Government shall submit an annual economic report to the Bundestag and to the Bundesrat in January of each year. The Annual Economic Report contains:

1.

the opinion on the annual report of the Council of Experts on the basis of § 6 (1) sentence 3 of the Law on the formation of a Council of Experts on the evaluation of the overall economic development of 14 August 1963 (Federal Law Gazette). 685), as amended by the Law of 8 November 1966 (Bundesgesetzbl. 633);

2.

a presentation of the economic and financial policy objectives (annual projection) envisaged for the current year by the Federal Government; the annual project shall use the appropriations and the form of the national accounts, where appropriate with alternative invoices;

3.

A presentation of the economic and financial policy planned for the current year.

(2) Measures pursuant to § 6 (2) and (3) and in accordance with § § 15 and 19 of this Act as well as in accordance with Section 51 (3) of the Income Tax Act and pursuant to § 19c of the Corporate Tax Act may only be taken if the Federal Government is at the same time vis-à-vis the The Bundestag and the Bundesrat justify the need for these measures in order to prevent the objectives of § 1 from being endangered.

Footnote

§ 2 (2) italic pressure: See now § 23 (2) of the German Corporate Tax Law 611-4-4 Unofficial table of contents

§ 3

(1) In the event of a threat to one of the objectives of § 1, the Federal Government shall provide guidance data for the simultaneous concerted action (concerted action) of local authorities, trade unions and business associations. To achieve the objectives of § 1. These orientation data contain, in particular, a presentation of the overall economic context with regard to the given situation. (2) The Federal Ministry of Economics and Technology has the orientation data at the request of one of the Explain the parties involved. Unofficial table of contents

§ 4

In the case of external economic disturbances of the overall economic balance, the defence of which is not possible by means of internal economic measures, or is only possible with impairment of the objectives set out in § 1, the Federal Government has all the possibilities of to make use of international coordination. To the extent that this is not sufficient, it shall set the economic policy resources available to it in order to preserve the balance of external economic equilibrium. Unofficial table of contents

§ 5

(1) In the federal budget, the scope and composition of expenditure and of the appropriations for the purpose of taking commitments at the expense of future accounting years shall be calculated as necessary to achieve the objectives of § 1. (2) (3) In the case of one of the objectives, the aim is to increase the amount of debt to be repaid to the Deutsche Bundesbank or to provide for an economic compensatory reserve. (3) § 1 Risk mitigation of general economic activity In addition, the necessary cover resources should first be taken from the economic recovery reserve. Unofficial table of contents

§ 6

(1) In the implementation of the federal budget the Federal Government may authorise the Federal Ministry of Finance in order to achieve the objectives of § 1 in the event of a higher demand expansion in excess of the economic performance. Disposal of certain expenditure means, the commencement of building measures and the introduction of obligations at the expense of future accounting years to be subject to the consent of the latter. The Federal Ministries of Finance and Economic Affairs and Technology propose the necessary measures. The Federal Ministry of Finance has to use the funds which have been released after the end of the accounting year for the additional repayment of debts to the Deutsche Bundesbank or to the recovery of the economic stimulus. (2) The The Federal Government may determine that additional expenditure shall be incurred in the event of a weakening of general economic activity which endangers the objectives of § 1; paragraph 1, second sentence, shall apply. The additional funds may only be used for purposes provided for in the financial plan (§ 9 in conjunction with § 10) or as financial assistance for particularly significant investments by the countries and municipalities (municipal associations) to prevent a disturbance of the total economic balance (Article 104a (4) sentence 1 GG). In order to cover them, the necessary resources should first be taken from the economic compensatory reserve. (3) The Federal Ministry of Finance is authorized to give credit for the purposes referred to in paragraph 2 above the provisions of the budgetary law. in addition to the amount of five billion Deutsche Mark, with the aid of money market documents, if necessary. To the extent that such loans are credited to a credit authorization subsequently issued in a household law, the right to borrowing may be reconsidered. Unofficial table of contents

§ 7

(1) The economic compensatory reserve is to be collected from the Deutsche Bundesbank. Funds of the economic compensatory reserve may only be used to cover additional expenditure pursuant to § 5 (3) and § 6 (2). (2) Whether and to what extent on the funds of the economic recovery reserve in the implementation of the federal budget , the Federal Government decides to apply the provisions of Section 6 (1) sentence 2. Unofficial table of contents

§ 8

(1) An empty title for expenditure under section 6 (2) sentences 1 and 2 shall be set in the federal budget. Expenditure under this Title may only be provided with the consent of the Bundestag and only in so far as revenue from the economic recovery reserve or out of credits pursuant to § 6 (3) are present. The presentation is to be forwarded simultaneously to the Bundestag and the Bundesrat. Within two weeks, the Federal Council will be able to give its opinion to the Bundestag. The consent of the Bundestag shall be deemed to have been granted if it has not been refused consent within four weeks of receipt of the Federal Government's submission. (2) The Federal budget also provides a blank title for revenue from the Federal Government. To discontinue the economic compensatory reserve and out of loans in accordance with § 6 (3). Unofficial table of contents

§ 9

(1) The Federal Government's budget economy shall be based on five years of financial planning. It shall indicate the extent and composition of the estimated expenditure and the possibilities for cover in its interaction with the presumed development of the overall economic performance, where appropriate by: Alternative invoices. (2) The financial plan shall be drawn up by the Federal Ministry of Finance and shall be justified. It is decided by the Federal Government and submitted to the Bundestag and the Bundesrat. (3) The financial plan is to be adapted and continued annually to the development of the financial system. Unofficial table of contents

§ 10

(1) As documents for the financial planning, the Federal Ministries for their business area shall submit multi-year investment programmes and send them to the Federal Ministry of Finance on the basis of the other needs estimates to that of the Federal Ministry of Finance. the determining point in time. The Federal Government determines the business units for which investment programmes are to be drawn up. (2) The investment programmes have broken down the investment projects to be carried out over the next few years, according to the urgency and the annual sections. shall be recorded. Each section of the year is intended to reflect the continuing and new investment projects with the partial amounts that have been paid for the year in question. The Federal Government's financial support for investments by third parties is to be recorded in a specific part, using the same principles of finance, with the help of the financing method. (3) The investment programmes are annually development to adapt and continue. Unofficial table of contents

§ 11

In the event of a weakening of general economic activity, which jeopardise the objectives of § 1, the planning of suitable investment projects must be speeded up in such a way that their implementation can be started in the short term. The competent federal ministries have to take all further measures necessary to expedite the allocation of investment orders. Unofficial table of contents

§ 12

(1) Federal funds for specific purposes outside the Federal Administration, in particular grants, shall be granted in such a way as not to contradicts the objectives of § 1. (2) The grants referred to in paragraph 1 shall be subject to the following conditions: the Federal Government to the Bundestag and the Bundesrat, together with the draft federal budget every two years, a numerical overview, which is in particular divided into grants, which

1.

the maintenance of establishments or economic activities,

2.

adaptation of businesses or industries to new conditions and

3.

the promotion of productivity progress and the growth of businesses or industries, in particular through the development of new production methods and directions;

(3) An overview of the tax advantages, together with the estimated decrease in income, shall be added together with the corresponding breakdown of paragraph 2. (4) On the overviews referred to in paragraphs 2 and 3, the Federal Government shall indicate which: Legal or other obligations shall be based on the respective grants and tax advantages and when, in accordance with the legal situation in question, the financial assistance and tax relief shall be terminated. It shall at the same time make proposals as to the legal or other conditions for an earlier termination or a phased reduction in commitments. To this end, a timetable shall be drawn up in accordance with the outline described in paragraph 2. Unofficial table of contents

§ 13

(1) The provisions of § § 1, 5, 6 (1) and (2) shall apply to the special ERP assets. (2) The Federal Ministry of Transport, Building and Urban Development shall, in agreement with the Federal Ministry of Finance, issue the Federal Railways for the Deutsche Bundesbahn (German Federal Railways). (3) The federal bodies, institutions and foundations of public law are to take into account the objectives of § 1 within the framework of the tasks to which they are responsible. Unofficial table of contents

§ 14

§ § 5, 6 para. 1 and 2, § § 7, 9 to 11 as well as § 12 para. 1 apply analogously to the household economy of the countries. The regulation of competences is left to the countries. Unofficial table of contents

§ 15

(1) In order to prevent a disturbance of the overall economic balance, the Federal Government may, with the consent of the Federal Council, order the Federal Government and the Länder to have funds to compensate for their economic compensatory reserves. (2) In order to prevent the macroeconomic balance being disturbed, the Federal Government may order the Federal Government The legal regulation is the total amount to be determined by the Federal Government and the Länder. Without prejudice to the amounts to be allocated to the economic compensatory reserves referred to in paragraph 4, it shall not exceed three in one financial year of the revenue generated by the Federal Government and the Länder in the previous financial year. (3) Insofar as the Confederation and countries shall not agree otherwise, they shall have the total amount in proportion to the tax revenue they have received during the previous financial year, taking into account the compensatory allocations and the compensatory contributions in accordance with the To raise country-specific financial compensation. In the calculation of the tax revenues of the Länder, the municipal taxes of the Länder of Berlin, Bremen, Hamburg and the subsidies to be provided pursuant to § 6 para. 2 of the Act on Compensation for Goods Vehicles are not taken into consideration. If, in the same financial year, the Federal Government or individual countries have already supplied funds, they shall be credited to their obligation. (4) If the income tax is payable on the basis of the authorization provided for in Article 51 (3) (2) of this Regulation, the tax on income tax is calculated. of the Income Tax Act and the corporation tax on the basis of § 19c of the Corporate Tax Law, the Federal Government and the Länder have in addition constantly their economic compensatory reserves from the rise in income tax and Corporation tax during the period for which the increase applies, in each case amounts in the (5) The ratio of the percentage by which the income tax and the corporation tax have been increased is equal to the sum of 100 and this percentage. (5) The balance reserves, which are due to the The legal regulation referred to in paragraph 1 or amounts supplied pursuant to paragraph 4 may only be taken in so far as they are approved by the Federal Government with the consent of the Federal Council. The release is only allowed to avoid a weakening of general economic activity which is dangerous to the objectives of § 1. The provisions of sentences 1 and 2 shall apply to the appropriations referred to in the third sentence of paragraph 3.

Footnote

Section 15 (4) italic pressure: See now § 23 (2) of the German Corporate Tax Law 611-4-4 Unofficial table of contents

§ 16

(1) Municipalities and associations of communes have to take account of the objectives of § 1 in their domestic economy. (2) Countries shall, through appropriate measures, work to ensure that the household economy of the municipalities and associations of communes is responsible for the Economic policy requirements. Unofficial table of contents

§ 17

The Federation and the Länder shall provide each other with the information necessary for the implementation of a cyclically adjusted budgetary economy and for the preparation of its financial plans. Unofficial table of contents

§ 18

(1) In the case of the Federal Government, an Economic Recovery Council is set up for the public sector. The Council shall include:

1.

the Federal Minister for Economic Affairs and Technology and Finance,

2.

a representative of each country,

3.

Four representatives of the municipalities and the municipal associations, which are determined by the Federal Council on a proposal by the local authority associations.

The Economic Council is chaired by the Federal Minister for Economic Affairs and Technology. (2) The Economic Council advises on a regular basis after a procedure to be adopted by the Federal Ministry of Economic Affairs and Technology:

1.

any economic policy measures necessary to achieve the objectives of this Act;

2.

the possibilities of covering the borrowing needs of public budgets.

The Economic Recovery Council is to be heard, in particular, before all measures according to § § 15, 19 and 20. (3) The Economic Recovery Council forms a special Committee on Credit Issues of the Public Hand, which is chaired by the Federal Minister of Finance after one of (4) The Bundesbank has the right to participate in the deliberations of the Economic Recovery Council. Unofficial table of contents

§ 19

In order to prevent a disturbance of the overall economic balance, the Federal Government may, with the consent of the Bundesrat, order the procurement of funds by means of the credit within the framework of the budgetary laws. or budget statutes by the Federal Government, the Länder, the municipalities and municipal associations, as well as the special assets and special purpose associations. The provisions of the first sentence shall not apply to loans taken by municipalities, associations of municipalities or special purpose associations to finance investment projects of their economic undertakings without their own legal personality. Unofficial table of contents

§ 20

(1) In legal regulations according to § 19, provision may be made for:

1.

for a period to be determined, the borrowing shall be limited to a maximum amount by the entities referred to in Article 19;

2.

within the limits of the maximum amounts fixed in accordance with point 1, loans of certain type or amount, in particular loans or promissable loans, only in accordance with a timetable and only in compliance with credit conditions (Article 22 (1) and (2)) shall be allowed.

(2) The maximum amount referred to in paragraph 1 (1) shall be at least 80 per cent of the sum of the total of the last five statistically recorded financial years prior to the adoption of the Regulation as a credit for the single body for one financial year. , loans granted by the Deutsche Bundesbank or by a body referred to in § 19, as well as loans for the purposes referred to in Article 19, sentence 2, shall not be taken into consideration. In order to compensate for fluctuations in the credit requirements of the municipalities, municipal associations and special purpose associations, the maximum amount can be reduced to 70 per hundred. The amounts thus released are to be assigned by the Länder to such municipalities, community associations and special purpose associations, which have to perform particularly urgent investment tasks. (3) In legal regulations according to § 19 it is to be determined to what extent The maximum amount referred to in paragraph 1 (1) shall be set off against credit received by third parties which are economically equivalent to one of the bodies referred to in Article 19. In particular, credit exposure of third parties shall be taken into account in so far as these tasks are carried out by financing for one of the entities referred to in § 19 or where such a body is responsible for borrowing by interest-rate subsidies or subsidies. (4) Legal regulations pursuant to § 19 shall be limited to a period of one year at the latest. (5) Legal regulations pursuant to § 19 shall be communicated to the Bundestag without delay after their proclamation. They shall be lifted immediately if the Bundestag demands it within six weeks of its delivery. Unofficial table of contents

Section 21

If one of the bodies referred to in § 19 does not apply a loan to them under the maximum amount pursuant to section 20 (1) (1), the agreement may, in so far as it is approved, take advantage of another of the entities referred to in § 19 to the extent that the credit is to be used. By way of derogation, the Länder may determine that the maximum amounts of the municipalities, associations of municipalities and special purpose associations shall be subject to the amounts exceeding the credit authorization in the budget, other municipalities, associations of municipalities and associations of municipalities, or special purpose associations with an additional credit requirement. Unofficial table of contents

Section 22

(1) The special committee of the Economic Recovery Board (Section 18 (3)), taking into account the situation on the capital market, shall draw up a timetable for at least three months in each case. In the plan, the order of the borrowing and the amount of the amount of the loan are to be determined for the loans granted in accordance with Article 20 (1) (2); the credit terms can be determined. (2) By the Federal Ministry of Finance may be declared binding on the timetable set out in paragraph 1, or, if no agreement has been reached in the special Committee of the Economic Recovery Council, a timetable shall be established with the consent of the Bundesrat. (3) The Federal Ministry of Finance can be responsible for the imminent deterioration of the capital market suspend the implementation of the timetable provisionally in consultation with the Deutsche Bundesbank. In this case, he shall enter into renewed deliberations within two weeks with the special Committee of the Economic Recovery Council. (4) The entities referred to in § 19 shall also be obliged to do so, even in the case of such loans which are not subject to the provisions of the Regulation. Article 20 (1) no. 2 is to take account of the situation on the capital market in the time sequence of borrowing and the design of the credit conditions. Unofficial table of contents

Section 23

Each country shall take appropriate measures to ensure that the procurement of funds by credit through the country, its municipalities, community associations and special purpose associations shall be within the limits of the Limitations. Unofficial table of contents

§ 24

(1) In the case of measures in accordance with § § 20 to 23, the principle of equal status of the tasks of the federal, state and local authorities must be observed. (2) The special circumstances of the Länder of Berlin, Bremen and Hamburg, which are simultaneously responsible for the tasks of the federal states and the Länder. To carry out municipal tasks must be taken into account. Unofficial table of contents

Section 25

At the request of the Federal Ministry of Finance, the competent supreme state authority shall provide information on the borrowing requirements of the country, the municipalities, associations of municipalities and special purpose associations on the nature and amount of the loans received and on the basis of the Borrowing from third parties, which are economically equivalent to their own borrowing. The public special assets shall provide the information referred to in the first sentence directly. Unofficial table of contents

§ § 26 to 31 ----

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Section 32

This law applies in accordance with Section 12 (1) and Section 13 (1) of the Third Transfer Act of 4 January 1952 (Bundesgesetzbl. I p. 1) also in the Land of Berlin. Legal orders issued pursuant to this Act shall apply in the Land of Berlin pursuant to Section 14 of the Third Transfer Act. Unofficial table of contents

§ 33

(1) This law shall enter into force on the day following its announcement, subject to the provisions of paragraph 2. (2) The provisions of § 26 No. 3 (a) and § 27 (2) with regard to § 23a (1) point 2 (k) of the Corporate Tax Law shall enter into force on the first day of the day. January 1969 came into force.