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Berlin (dpa) - Vice Chancellor Olaf Scholz (SPD) urges further financial relief for municipalities and a "zero hour" for municipalities with high debts.
In the years to come, gigantic sums of money would have to be invested all over Germany, for example in the fight against climate change, the expansion of renewable energies and the electricity infrastructure, said the finance minister of the German press agency.
"Two thirds of public investments in Germany are made by the municipalities, for which they need the financial strength," emphasized Scholz.
"That is why I am still in favor of financial relief for the municipalities in Germany and for those who have to struggle with particularly heavy burdens from the past to get a new" zero hour "."
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Bavaria's Finance Minister Albert Füracker (CSU) criticized that Scholz did not present any creative and effective concepts for supporting the municipalities in the Corona crisis.
"The municipalities need money for future investments instead of paying off old debts with fresh money," he told the dpa.
Scholz '"Zero Hour" is just a new term for an idea that was already bad at the time, namely the assumption of old debts from local authorities.
Scholz's idea failed last year due to opposition from the Union and several federal states.
Instead, the black-red coalition had agreed to take billions off the municipalities as a result of the corona pandemic.
Specifically, business tax losses by cities and municipalities were compensated.
The federal government also contributes more to the cost of accommodation in the basic security for job seekers over the long term.
In the opinion of FDP parliamentary group Vice Michael Theurer, targeted relief for highly indebted municipalities harbors disadvantages for municipalities that operate solidly and do not build up high debts.
“A“ zero hour ”for over-indebted municipalities would in retrospect legitimize the dubious financial policy in a number of SPD strongholds,” he emphasized.
Those who have managed sparingly should not look into the pipe.
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On the other hand, Scholz received support from the German Federation of Trade Unions.
The municipalities are pushing back investment arrears of 147 billion euros, said board member Stefan Körzell.
"But a sustainable local infrastructure is required if jobs are to be preserved and communities to remain attractive and livable."
A takeover of the old debts is the basis for enabling municipalities to act again.
© dpa-infocom, dpa: 210116-99-49762 / 2