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DGB-Chief: More investments and reform of the debt brake

Where the state withdraws or allows decay, right-wing populists have an easy time, warns the labor union representative. The public sector should therefore take more money into its own hands.

The public sector investment backlog must be resolved, demands the labor union chief. For this...
The public sector investment backlog must be resolved, demands the labor union chief. For this reason, the debt brake should be reformed.

Trade Union - DGB-Chief: More investments and reform of the debt brake

The Rhineland-Palatinate DGB chief Susanne Wingertszahn is calling for more investments from the state in infrastructure and education. "Dilapidated roads, rails, and schools have become commonplace," the labor union head told the German Press Agency in Mainz. "For future projects, there is often not enough money. That's no longer acceptable."

As examples of the investment backlog in Rhineland-Palatinate, Wingertszahn cited the Lahnstein Rhine Bridge, the Winningen Mosel Bridge over the A61, and the Landau-Pirmasens railway line. Investments were also lacking for the bridges between Ludwigshafen and Mannheim, the autobahn ring, and the Mainz tram network, as well as the Gemeinschaftsklinikum Mittelrhein sites.

The state auditor also recently criticized the poor condition of the infrastructure in its annual report and identified a need for over half a billion Euros for dilapidated roads and bridges in the state. The DGB chairman stated.

Debt brake should be reformed

"The investment backlog of the federal government, states, and municipalities is enormous," the labor union leader urged. "It is therefore completely illusory to provide the necessary resources by saving and shifting funds in the ongoing budget. Therefore, the debt brake must be suspended and fundamentally reformed. The debt brake in its current form is an investment brake and cannot continue to exist."

Many future investments in housing or businesses were financed through loans. "That's not a bad thing," Wingertszahn said. "Investments will eventually lead to lower costs or higher profits." Intelligent investments financed themselves in the long term. Public investments improved the conditions for a functioning economy with good jobs.

People want an active state

"The people want an active state, and they need it," said the state chairwoman of the German Trade Union Confederation (DGB). "Where the state retreats or allows run-down conditions, right-wing populists have an easy time, who want to destroy democracy."

Companies also needed good framework conditions and a secure infrastructure to cope with the transformation. The labor union leader also spoke in favor of a transformation fund, which has already been established in Saarland. This would be an appropriate means of maintaining employment, value creation, and prosperity in the country with targeted investments from the state. "It would be desirable to establish such a fund in Rheinland-Pfalz as well," Wingertszahn said.

  1. The call for investments extends beyond infrastructure, as Susanne Wingertszahn, the DGB chief in Lahnstein, Rhineland-Palatinate, also emphasizes the need for improved education facilities.
  2. The German Press Agency reported that Wingertszahn utilized examples from various parts of Rhineland-Palatinate, such as the Lahnstein Rhine Bridge and the Winningen Mosel Bridge.
  3. Wingertszahn's statement coincides with the criticisms of the state auditor, who highlighted a need for over half a billion Euros to fix dilapidated roads and bridges across Rhineland-Palatinate in their annual report.
  4. In the midst of this, Wingertszahn advocates for the reform of the 'debt brake,' arguing that the current restrictions hinder necessary investments and transformation funds.
  5. The transformation fund, already in place in Saarland, is praised by Wingertszahn as a tool that could maintain employment, value creation, and prosperity in Rhineland-Palatinate.
  6. Concerning future investments, Ludwigshafen companies and Mannheim autobahn ring are mentioned in the same vein, requiring investment in their infrastructure to create a secure and efficient framework for economic growth.

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