Household - Saarland expects more debt after floods
This heavy flooding during Pentecost in Saarland is predicted to result in additional debts for the country, amounting to approximately 94 million Euro. The Saarland parliament in Saarbrücken declared a natural disaster that will significantly affect the financial situation of the country in 2024. In cases where natural disasters elude the control of the state, higher borrowing is permitted.
Simultaneously, the Landesparlament, with the votes of the governing SPD and the opposition CDU, approved a corresponding supplementary budget for the years 2024 and 2025 in the first reading. SPD-Fraktion chairman Ulrich Commerçon stated, "During the rebuilding process on site, the effectiveness of the state will be put to the test." One must "ensure that the additional expenses are covered: That cannot be done without additional borrowing authority."
CDU-Fraktion chairman Stephan Toscani stated, "The state must help the cities and municipalities. But the federal government must also help them." He urged Minister President Anke Rehlinger (SPD) to take a more active stance in seeking federal aid for Saarland in the interest of our homeland.
According to estimates from the insurance industry, a private damage of around 200 million Euro was caused by the flood disaster from May 16-21. At least 75 million Euro are required for damage repair in municipal infrastructure.
The land hopes for more money for more inhabitants
Finance Minister Jakob von Weizsäcker (SPD) stated that he hoped the additional credits would not be or only partially needed. Since the Census 2022 resulted in a population of over one million people for the land, it would receive annual additional revenues of 200 million Euro from the federal financial equalization.
It is still unclear when this additional money will actually flow. If the payments could be made by September, the planned credits would not be needed. The state government has "quickly and bureaucracy-free provided help," Commerçon stated. He criticized the debt brake, which is "deeply embedded in the neoliberal mainstream."
"The demonization of investments through the taking on of debts reflects ultimately also blind trust in the self-regulatory powers of the market and distrust towards state expenditures." Targeted investments are necessary to prevent a handicapped state from allowing "our society to fall apart during this comprehensive transformation phase."
Toscani countered, "This flooding in Saarland is the classic case where the debt brake allows exceptions and provides flexibility. The flood disaster in Saarland is, in fact, a classic example of the flexibility and functioning of the debt brake." The real problem is "that the red traffic light in Berlin cannot understand priorities. And that's why you're looking for a way in additional new borrowing."
Sixty-six million Euro still to be allocated in this year
From the planned 94 million Euro, 66 million Euro are supposed to be spent in this year, said Weizsäcker. Thirty-three million are earmarked for the support of the communes. Damages to the infrastructure of the state are currently estimated at 12 million Euro. Seventeen million Euro are planned for strengthening the flood protection. The Saarland currently has debts amounting to around 17 billion Euro.
The AFD fraction leader Josef Dörr rejected new credit acquisitions. In comparison to the federal tax revenues, the 94 million Euro "is not a significant amount": "And shouldn't the Bund (federal government) make that available to us?" Addressing Rehlinger, he said: "Be brave, be strong, go to the Bundeskanzler (federal chancellor) for the Saarland."
The heavy flood during Whitsun in Saarland was declared a natural disaster by the Saarland parliament, requiring additional borrowing for the CDU and SPD. Anke Rehlinger, the Minister President, was urged to seek federal aid to help cover the estimated 200 million Euro in private damages and 75 million Euro in municipal infrastructure repairs. The SPD and CDU in the Saarbrücken parliament approved a supplementary budget to address this natural disaster. Despite hopes for additional revenue from the Census 2022, Finance Minister Jakob von Weizsäcker acknowledged that 66 million Euro of the 94 million Euro budget would need to be spent this year. The AFD fraction leader, Josef Dörr, rejected new credit acquisitions, suggesting the federal government should provide the necessary funds instead.
