ARTICLE · 29 AUGUST 2002

265. Germany to Create Flood Recovery Fund

KPMG Germany

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by Thomas Sauter
For editorial cut-off date, disclaimer, and notice of copyright see end of this article.

The German government has introduced fast track legislation to create a fund from which to finance recovery measures for the parts of Germany affected by the recent Eastern European flood catastrophe. Flood damage estimates currently range as high as Euro 15 billion in Germany alone.

The new Flood Victim Solidarity Law (Flutopfersolidaritätsgesetz) received cabinet approval on Monday, 26 August 2002. Ratification by the German parliament (Bundestag) is expected shortly. The legislation must also be approved by the Federal Council (Bundesrat), a body composed of delegates of the German states (Länder). However, the state governments have agreed to support or at least not oppose the bill, which is accordingly expected to become law before the national elections on 22 September 2002.

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