The German government agreed on Thursday to almost entirely abolish the so-called solidarity tax.

Introduced in 1991 after German reunification, the taxraised money to invest in projects and infrastructure in the former communist East, where living standards and average income were lower.

The tax will be abolished for 90% of taxpayers from 2021.

Under new rules, 6.5% of taxpayers will pay a reduced rate while 3.5% of the wealthiest Germans will continue to pay it at its full rate.

German Finance Minister Olaf Scholz said that the abolition was possible because of how far Germany had come in the years since reunification.

Read more: Eastern Germany still lags, three decades after reunification: study

Germany's biggest wastes of taxpayer money in 2019 Solar flower power, in the shade Every year, the German Taxpayers Federation keeps tabs on areas where they believe taxpayer money was wasted and sums up the most egregious cases in its annual "black book." The 2019 report called out Thuringia's Environment Ministry for a flower-shaped mini-solar panel sculpture that was installed in the shade. The ministry defended the flower, saying it was never supposed to power the building.

Germany's biggest wastes of taxpayer money in 2019 A bridge for mice After realizing that a new bypass road near the southern German city of Passau cuts through the natural habitat of the dormouse, officials got creative and built a bridge for the mice to safely travel over the road. The German Taxpayer's Federation (BdSt) had a bone to pick with the resulting structure ...

Germany's biggest wastes of taxpayer money in 2019 Perilous path to safety (instructions not included) ... The bridge requires mice to climb wooden rungs up 7 meters high (23 feet) and run down a passage 20 meters long in order to travel safely over the road. The project ended up costing taxpayers €93,000; the BdSt said it wasn't clear if any dormice actually use the bridge. The city of Passau said colonies of mice were found near the road. Explaining the bridge's purpose to them may prove tricky.

Germany's biggest wastes of taxpayer money in 2019 Stolen but golden This golden bird's nest was the prized possession of an elementary school in Berlin — until it was stolen. The sculpture, comprised of 74 branches made out of pure gold, was placed in a display case with supposedly shatter-proof glass. According to the BdSt, the artwork cost €92,500. Thieves tried to break in several times and managed to make off with the nest on their third attempt.

Germany's biggest wastes of taxpayer money in 2019 Germany's failed highway toll One of the standouts in this year's "black book" was German Transport Minister Andreas Scheuer's failed highway toll. Earlier this year, the European Court of Justice ruled against it, saying the toll discriminated against non-Germans. Scheuer had already signed contracts to implement it, which will cost "hundreds of millions of euros" to settle, according to the BdSt.

Germany's biggest wastes of taxpayer money in 2019 Germany's most expensive sail boat Germany's naval training vessel, the "Gorch Fock," became the poster child of public spending waste earlier this year when it was revealed that renovating the ship is set to cost taxpayers up to €135 million. The Defense Ministry was accused by auditors of "severe" mismanagement over the project, with the BdSt arguing it would have been cheaper to build a whole new ship.

Germany's biggest wastes of taxpayer money in 2019 Scrutiny of lynx project A project reintroduce lynxes in western Germany was also criticized. Although the BdSt agreed it is important to protect to species, they claim much of the €2.7 million budget for the project is being spent in administrative and public relations costs. The organization heading the project said protecting the lynx was more than a "noble goal," but also a legal requirement in Germany and the EU.

Germany's biggest wastes of taxpayer money in 2019 The quick paint job that never was Earlier this year, the city of Hanover decided that a sculpture by US artist Alexander Calder was in need of sprucing up and installed scaffolding around it. What was supposed to be a quick paint job ended up taking much longer, as the city hadn't secured permission. Although it was never painted, the scaffolding stayed up for four months before it was eventually taken down, costing €14,000.

Germany's biggest wastes of taxpayer money in 2019 Expensive typos Routine local elections in the city of Mainz and three other districts in the state of Rhineland-Palinate ended up costing more than expected this year after the names of candidates were misspelled. Over 500,000 new ballot papers had to be printed over typos like "Aexandra" instead of "Alexandra" and "Freidrich" instead of "Friedrich." The whole process cost €80,000.

Germany's biggest wastes of taxpayer money in 2019 Pricey party The northern city of Papenburg was called out for throwing a party at an old estate house that ended up costing €30,000 — more than double what was budgeted. Around 250 visitors were invited to an elaborate dinner with string quartet accompaniment, all on the taxpayers' tab according to the BdSt. Author: Rebecca Staudenmaier



What is the "Soli" tax?

The tax, which brought the state €18.9 billion ($21.2 billion) in 2018, was first introduced in 1991 to help cover the costs of reunification and invest in infrastructure in the former East Germany. It was originally meant as a temporary measure but was made permanent in 1995.

Germany's federal government also agreed a "Solidarity Pact" with the state governments in 2001, a plan that is meant to financially support the eastern German states and lift them to economic parity with the former West.

That pact expires at the end of this year, and the president of Germany's Constitutional Court, Hans-Jürgen Papier, concluded in May that the tax, nicknamed the "Soli," should be abolished by then.

He argued the tax would effectively be unconstitutional if no pact was in place as a framework within which to spend the money on the East.

Since 2012, the government has been collecting more money from the Soli than it spends on its Eastern states.

Watch video 01:56 Share Germany – still not all one Send Facebook google+ Whatsapp Tumblr linkedin stumble Digg reddit Newsvine Permalink https://p.dw.com/p/3SRHT How different are eastern and western Germany?

ed, bk/aw (dpa, AFP)

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