Legal Basis

The legal basis of the Stability Council is set out in Article 109a of the Basic Law. Its work is also governed by provisions in a number of other laws, including the Stability Council Act, the Consolidation Assistance Act, the Financial Equalisation Act and the Budgetary Principles Act.

Basic Law for the Federal Republic of Germany

Article 109a of the Basic Law comprises the legal basis for the Stability Council.
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Stability Council Act

The aim of the Stability Council Act is to establish a system of regular budgetary monitoring in order to prevent budgetary emergencies.
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Consolidation Assistance Act

On the basis of Article 143d paragraphs (2) and (3) of the Basic Law, the Consolidation Assistance Act governs the requirements under federal law for providing consolidation assistance from the federal budget and the Länder budgets.
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Finance Equalisation Act

The Länder of Berlin, Brandenburg, Mecklenburg-Vorpommern, Sachsen, Sachsen-Anhalt and Thüringen provide the Stability Council with annual updates on their progress in closing infrastructure gaps and on the use of funds given to them to tackle special challenges arising from the post-war division of Germany. These updates are included in the Aufbau Ost progress reports that are published on an annual basis.
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Budgetary Principles Act

To coordinate the budgetary and financial planning of the Federation, Länder, local authorities and associations of local authorities, the Stability Council discusses the macroeconomic and fiscal assumptions underlying this planning.
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