Article 5
Future Amendments to the Constitution
The Governments of the two Contracting Parties recommend to the legislative bodies of the united Germany that within two years they should deal with the questions regarding amendments or additions to the Basic Law as raised in connection with German unification, in particular
– with regard to the relationship between the Federation and the Länder in accordance with the Joint Resolution of the Minister Presidents of 5 July 1990,
– with regard to the possibility of restructuring the Berlin/Brandenburg area in derogation of the provisions of Article 29 of the Basic Law by way of an agreement between the Länder concerned,
– with considerations on introducing state objectives into the Basic Law, and
– with the question of applying Article 146 of the Basic Law and of holding a referendum in this context. [ . . . ]
Article 7
Financial System
(1) The financial system of the Federal Republic of Germany shall be extended to the territory specified in Article 3 unless otherwise provided in this Treaty.
(2) Article 106 of the Basic Law shall apply to the apportionment of tax revenue among the Federation as well as the Länder and communes (associations of communes) in the territory specified in Article 3 of this Treaty [ . . . ]
(3) [ . . . ] The Land share of turnover tax throughout Germany shall be divided up into an eastern component and a western component in such a way that the average share of turnover tax per inhabitant in the Länder of Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia amounts
in 1991 to 55 per cent
in 1992 to 60 per cent
in 1993 to 65 per cent
in 1994 to 70 per cent
of the average share of turnover tax per inhabitant in the Länder of Baden-Württemberg, Bavaria, Bremen, Hesse, Hamburg, Lower Saxony, North-Rhine/Westphalia, Rhineland-Palatinate, Saarland and Schleswig-Holstein. The share of Land Berlin shall be calculated in advance on the basis of the number of inhabitants. The provisions contained in this paragraph shall be reviewed for 1993 in the light of the conditions prevailing at the time.
[ . . . ]
(5) Following the establishment of German unity the annual allocations from the German Unity Fund shall be distributed as follows:
1. 85 per cent as special assistance to the Länder of Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia as well as to Land Berlin to cover their general financial requirements and divided up among these Länder in proportion to their number of inhabitants, excluding the inhabitants of Berlin (West), and
2. 15 per cent to meet public requirements at a central level in the territory of the aforementioned Länder.
(6) In the event of a fundamental change in conditions, the Federation and the Länder shall jointly examine the possibilities of granting further assistance in order to ensure adequate financial equalization for the Länder in the territory specified in Article 3 of this Treaty.
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