- Advocates on the left propose an aggressive financial strategy for East Germany.
The Left pushes for an investment push in East Germany. "There's a total public investment requirement of approximately 600 billion euros in Germany over the next decade. This translates to around 190 billion for the eastern federal states," the party stated in response to a query. Strong public infrastructure is crucial for local living standards. There's a significant investment shortfall in municipalities for schools, daycare centers, healthcare facilities, and transportation infrastructure. "It's high time for action." The strategy's specifics will be unveiled by Federal Chairperson Martin Schirdewan and Saxony Left Chairperson Stefan Hartmann in Berlin on Monday.
In particular, the Left suggests the establishment of an "East Infrastructure Fund". This would be exempt from the debt cap, enabling investment in a forward-thinking economy, expanding public services, and resolving the investment deficit in municipalities and states in the east. With enforceable investment plans, the expansion of local public transport, school renovations, and the establishment of community centers in villages can be managed. Transitional measures are necessary for greatly impacted economic sectors.
Another aspect involves promoting cooperatives and employee-owned businesses: "In business succession, there's often a void that can be filled by transferring the business to employee ownership," it stated. In villages, "community centers" should be established: "They serve as meeting places and provide basic services like post and bank services (...). The management of the community centers is handled through collectively agreed jobs. We estimate that for 50 to 60 community centers per eastern federal state area, it will cost 100 million euros over a five-year period." In the health sector, municipalities need their own polyclinics.
Left: East Germans Earn Less
According to the Left, wages and pensions in the east should increase. "On average, East Germans work longer and earn around 10% less than their West German counterparts. Last year, full-time employees in East Germany earned an average of 824 euros gross per month less than their counterparts in the west," they explained. The wage regions of East and West should be abolished, and equal wages should be paid in the public sector or working hours should be equalized.
Furthermore, it's about keeping municipalities financially viable. Many of them are still trapped in debt. "The financial disparity between wealthy and poor municipalities in Germany is staggering. In areas where municipalities struggle financially, social harmony breaks down." An effective debt relief initiative from the federal government is needed. Remaining debts from the GDR should be written off. A debt fund for municipalities is essential.
I'm not going to sugarcoat the situation; there's a significant disparity between wages and living standards in East and West Germany. I'm not going to lie, the investment shortfall in municipalities for essential facilities is a pressing issue.
