Dilapidated infrastructure, a lack of housing: there are many things that the state could invest money in – and from the point of view of the Greens, it should. But the federal government is the debt brake in the way.
In view of the narrow financial leeway, Green Party leader Ricarda Lang advocates circumventing the debt brake. “We agreed in the coalition agreement that we would not tackle the debt brake,” Lang told the German Press Agency in Berlin. “But that shouldn’t be used as an excuse not to look at other financing options for necessary investments in the future. Because they exist.”
An instrument provided for in the coalition agreement between the SPD, Greens and FDP that is not yet being used sufficiently is public investment companies. In the case of an investment company, the federal government would provide it with equity. It could then raise and invest further capital through loans. The federal government would take responsibility for that.
“Without any impact on the debt brake, we can easily equip the railways or the Federal Agency for Real Estate Tasks in such a way that they meet the challenges of our time,” explained Lang. The Federal Agency for Real Estate (Bima) could then invest in social housing. “That would be a win-win situation – for the many people who will still be looking for affordable housing in the future, and for the construction industry, which could really use some support in the current situation.”
Long: Protection against rising energy prices
The coalition agreement states: “We will strengthen existing state-owned companies such as Deutsche Bahn AG (infrastructure sector) or BImA and improve their financing options.”
Like Federal Minister of Economics Robert Habeck (Greens), Lang also advocated financing the subsidized industrial electricity price he proposed from the Economic Stabilization Fund (WSF). This fund, set up during the corona pandemic, was reactivated during the energy crisis to cushion the consequences. “Last year we in the coalition agreed to recharge and use an already existing special fund, the Economic Stabilization Fund – with the aim of protecting the economy and, of course, the country in times of rising energy prices,” said Lang. “Now this protection may look a bit different, but it is no less important. The financial leeway is there.” Finance Minister Christian Lindner (FDP) rejects any other use of these funds.
Lang demanded that prosperity reach those who worked for it. “Both belong together: In order to create more justice, we have to get Germany back on course for growth.” To do this, over-regulation must be eliminated. “Second: I propose an investment agenda in which the state invests strategically in public infrastructure, in a country that simply works – and thus also stimulates private investment.” In addition, state money must also be allocated according to social criteria. “If the state supports or invests, then you have to pay according to the tariff and guarantee the location. You could do that with the industrial electricity price, for example.” And finally, Germany needs enough workers and skilled workers. “That means more further training, more women’s participation in the labor market – and we now have to fill the Skilled Immigration Act with life, for example by recognizing professional and educational qualifications more easily and quickly.”
prosperity and justice
The current economic situation does not leave them cold, emphasized Lang. “Germany is a strong country with a strong economy. But if the economy in other countries is now growing faster again, also because the governments there are investing more, then we have to do it too. I assume that prosperity and justice will come in the next time will be the central issues of the traffic light coalition – and rightly so.”
The traffic light coalition agreed to set growth impulses. The Growth Opportunities Act is a first step with good points such as the bonus for climate-friendly investments. It is about a legislative package by Finance Minister Lindner with tax policy measures that are intended to relieve the economy by around 6.5 billion euros a year. “From my point of view, further steps for more prosperity and competitiveness should follow, for example the industrial electricity price or an investment agenda.”
Long assured: “The Growth Opportunities Act and the basic child security will come.” She is certain that the government will launch both this month. Family Minister Lisa Paus (Greens) recently blocked the Growth Opportunities Act in the cabinet. Like the Greens in general, she is pushing for the adoption of basic child security, which is intended to combine benefits for families and increase them at the same time. The FDP is critical of performance improvements.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
