Thriftiness - Minister President Kretschmann: The time of the cornucopia ends
In the face of numerous crises, Baden-Württemberg's Minister President Winfried Kretschmann is calling for a new culture of thrift in the state. "We must prepare ourselves for the fact that the time of the cornucopia is coming to an end," the Green politician told the German Press Agency in Stuttgart. In his view, the problem is that people are no longer used to being thrifty. "Everyone is talking about saving money, except for themselves - that's nothing new. But we haven't been saving for many years. There was always more to distribute. That is the curse of a long period of prosperity," he said. "We are no longer used to real cuts."
"Impositions will come. There is no way around it," said the head of government on the current situation. In this context, Kretschmann recalled the necessary expenditure for the transformation of the energy system, such as for the hydrogen network. Or the wage settlements, which would be very expensive for the country. With a view to the upcoming budget negotiations in the southwest, he spoke of "much less leeway": "We must prepare ourselves for the fact that we will have to make savings again in order to be able to finance things that are absolutely necessary - for example, elementary school and early childhood education in kindergartens."
Many expenditure items are also co-financed between the federal and state governments, said Kretschmann. "I assume that we will receive even less from the federal government than we already do." The traffic light system had experienced "an enormous disruption" as a result of the Federal Constitutional Court's ruling on the budget.
Kretschmann also pleaded for a debt brake that would allow more investment in the future. He is still a supporter of this mechanism, he said. But: "The debt brake must not be a brake on the future." The transformation that is now to take place in a short space of time would overburden the current generation. "For this area, the design of the debt brake must certainly be adapted so that investments can be spread over a longer period of time." However, investments must be made now: "The fight against climate change only has a modest window of opportunity."
However, Kretschmann pointed out that the CDU/CSU had made it clear that they did not want to change the debt brake. He therefore believes that a transformation fund - for investments in climate protection, for example - is also a possible solution. "I could imagine that this is a path that the CDU/CSU could take rather than changing the debt brake."
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- Given the financial challenges faced by Baden-Württemberg, Minister President Winfried Kretschmann from Stuttgart emphasizes the importance of promoting a culture of thriftiness within the government, as stated by the German Press Agency.
- Winfried Kretschmann, the Green Party leader in Baden-Württemberg, has noted that households in Germany, including his own region, have become less accustomed to practicing frugality due to the prolonged period of prosperity, which has been marked by an abundance of resources.
- Germany's Minister President for Baden-Württemberg, Winfried Kretschmann, stated that the state government will likely have less flexibility in budget negotiations as a result of ongoing financial challenges, such as the costly transformation of the energy system, which includes investments in a hydrogen network, and potential expensive wage settlements.
- In his efforts to address these financial challenges, Kretschmann has suggested that the federal and state governments could jointly invest in climate protection and other necessary areas, such as elementary education, by establishing a transformation fund instead of altering the current debt brake regulations, which could be a more agreeable solution for the CDU/CSU.
Source: www.stern.de