- Kretschmann wants special assets for hydrogen and rail
Baden-Württemberg's Minister President Winfried Kretschmann calls for a special fund for urgently needed investments in infrastructure. "We need the opportunity to build a special fund through loans, which can only be used for very specific investment purposes," the Green politician told the German Press Agency in Stuttgart. As an example, Kretschmann cited the construction of a hydrogen network, which must be tackled urgently.
"We have virtually no green hydrogen today, it's still a future prospect. But that it will come is completely undisputed. Then you need these networks, and whoever doesn't have them immediately faces enormous competitive problems," said Kretschmann. However, as there won't be relevant amounts of green hydrogen for another ten years, there will also be no returns on investments in the network. "For that, we need the opportunity to take out loans that can be repaid over a relatively long period of time."
He is not at all in favor of generally loosening the debt brake, Kretschmann said. "I'm fully behind that." It is an important achievement and serves to protect future generations from high debts and interest burdens. "But: The debt brake must not become a brake on the future. If important investments are lacking, it also harms the next generation," said the Green politician to the dpa.
The debt brake was anchored in the Basic Law in 2009 following the global financial crisis. According to it, the federal government and the states are no longer allowed to balance their budgets by taking on new debt.
What's next for the debt brake?
There has been a debate about it for some time, with some economists calling for a reform to give the state more leeway. In April, CDU state chairman Manuel Hagel called for significantly higher legal hurdles for exceptions to the debt brake, requiring a two-thirds majority in parliament, both in the southwest and at the federal level. "We need a kind of eternal guarantee for the debt brake, so that the discussion finally ends. All those who now always talk about reforms actually want to undermine the debt brake," he said.
As another example, Kretschmann cited the railway. "The traffic light coalition has inherited an enormous maintenance backlog, because no one has invested for decades. You can't just solve that in one budget," said the Minister President. Nevertheless, one must invest heavily in this area - otherwise, one runs the risk of burdening future generations with costs that one does not want to bear now. "No one can seriously want us to do this piece by piece. We really have to do this now, otherwise we won't make any progress on climate protection."
However, it must also be clear that the state alone cannot shoulder the necessary investments, Kretschmann said. "We must activate much more private capital."
The financial sector could play a crucial role in providing the necessary loans for long-term investments in green hydrogen networks and infrastructure, as these projects might not generate immediate returns. The debt brake, while essential for protecting future generations from high debts and interest burdens, should not hinder needed investments in sectors like the railways, hydrogen networks, and the financial sector, which are pivotal for climate protection and the country's future.
