Tasks

In accordance with Article 109a of the German constitution, the Basic Law, the Stability Council monitors the budgets of the Federation and the Länder on a regular basis. The Stability Council is responsible for identifying whether any of the Länder, or the Federation are at risk of a budgetary emergency. If this is the case, the Stability Council will agree upon an adjustment programme with the government of the respective entity.
The Stability Council has been assigned further tasks by law. In particular, the Council monitors whether Germany complies with the requirements of the Fiscal Compact and the Stability and Growth Pact. These arrangements stipulate an upper limit on the general structural deficit of 0.5% of gross domestic product. When necessary, the Council recommends appropriate consolidation measures for the Federation and Länder.

Budgetary Surveillance for the Avoidance of Budgetary Emergencies

Under Article 109a of the Basic Law (Grundgesetz) and section 3 of the Stability Council Act (Stabilitätsratsgesetz), monitoring the budgets of the Federation and Länder on a regular basis is one of the Stability Council’s central tasks. The Council’s aim is to recognize impending budgetary emergencies at an early stage so that appropriate counter-measures can be initiated in a timely manner.
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Compliance with the EU Requirements for Budgetary Discipline

In accordance with section 6 of the Stability Council Act, the Council monitors the budgets of the Federation, Länder, local authorities and social insurance funds, to make sure that these, taken together, comply with the upper limit for the general government structural deficit of 0.5% of national gross domestic product, as laid out in section 51 subsection (2) of the Budgetary Principles Act.
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Monitoring Consolidation Obligations

In line with section 2 subsection (2) of the Consolidation Assistance Act (Konsolidierungshilfengesetz), the Stability Council monitors compliance with the obligations that certain Länder must fulfil in order to receive ongoing consolidation assistance until 2019. These Länder are Berlin, Bremen, Saarland, Sachsen-Anhalt and Schleswig-Holstein.
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Progress Reports „Aufbau Ost“

Under section 11 subsection (3) of the Financial Equalisation Act (in the version valid until 31 December 2019), the Stability Council is to discuss the “Aufbau Ost” progress reports for the Länder of former East Germany (which are produced in connection with the development programme for the economic reconstruction of these Länder) and the statements of the Federal Government on these reports.
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Coordination of Budgetary and Financial Planning

Under section 51 subsection (1) of the Budgetary Principles Act, the Stability Council is to consider the overall economic and fiscal conditions in existence at the time of drafting the federal, Länder and local government budgetary and financial plans.
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Monitoring compliance with the Germany’s debt brake

In accordance with § 5a of the Stability Council Act, from 2020 the Stability Council monitors compliance by the German Federation (Bund) and each individual federal states (Länder) with the debtor rule of Article 109 paragraph 3 of the Basic Law for the previous, current and following year.
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