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Koch: Difficult years for Schleswig-Holstein

The draft budget for 2024 is already difficult. But things could get even worse for Schleswig-Holstein. CDU parliamentary group leader Koch does not yet see an upturn.

Tobias Koch (CDU), chairman of the parliamentary group. Photo.aussiedlerbote.de
Tobias Koch (CDU), chairman of the parliamentary group. Photo.aussiedlerbote.de

CDU parliamentary group leader - Koch: Difficult years for Schleswig-Holstein

The chairman of the CDU parliamentary group in Schleswig-Holstein, Tobias Koch, expects the state's financial situation to remain difficult in the next two years. "I have not yet seen any positive signals that suggest a noticeable economic recovery," Koch told dpa. "This could lead to a further drop in tax estimates." The only way to react to this in 2024 would be with further economic loans." This would be permissible within the framework of the debt brake.

"As long as we don't see a return to economic growth that also brings us significantly higher tax revenues, the budget situation will remain extremely challenging with rising costs and increasing interest rates," said Koch. According to forecasts, tax revenue next year is expected to be at the same level as in 2022. The same level of revenue would be offset by significantly higher expenditure due to salary increases, for example.

Schleswig-Holstein is also particularly susceptible to crises due to its large mountain of debt of around 32 billion euros and the resulting interest charges. "We are not financially bedded on roses, which is why the introduction of the debt brake was so important for our state," emphasized Koch. After all, the state will begin its first regular debt repayment next year. Previously, old debts had only ever been repaid with new debts.

Koch believes that the further development of the daycare system will be particularly important next year. Despite the difficult financial situation, more flexibility and childcare security must be achieved for parents and children. This could be achieved, for example, by relaxing the strict rules for childminders and allowing more children per childminder in daycare centers during off-peak hours. "We need more flexibility in the system so that the high standards and reliability that we all want can also be managed locally."

Koch pointed out that the state had significantly increased its financial commitment in recent years to almost 700 million euros per year. "There is no other area in which the black-green coalition is investing as much and spending in the state budget is growing as much as in the childcare sector." In 2017, at the beginning of the Jamaica coalition, it was only just over 200 million euros.

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In the context of Schleswig-Holstein's financial struggle, Tobias Koch, the leader of the CDU parliamentary group, highlighted the state's continued financial difficulties, mentioning the potential impact on tax estimates and the need for economic loans within the debt brake limits. Despite the expected stability in tax revenue, the state's costs, such as salary increases, will rise, leading to an even more challenging budget situation.

With the large debt of around 32 billion euros and rising interest rates, Schleswig-Holstein, as emphasized by Koch, requires additional flexibility in its daycare system to maintain high standards while managing costs effectively, such as relaxing childminder rules and allowing more children per childminder in off-peak hours.

Source: www.stern.de

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