“The financial leeway in Berlin is tighter than it has been for years. With the 2024/25 double budget, the coalition must strike a clever balance between consolidation and investment. In view of the tense economic situation and signs of a slowdown in the labor market, this is no easy task. In this situation, priority should be given to investments that strengthen companies, secure jobs and help the location. Only with stronger economic growth will the country regain greater financial – and thus political – leeway in the long term. At the same time, we need an economic policy that helps companies to cope with the major changes of our time, such as digitization, climate protection or demographic change.
The Corona crisis and the war in Ukraine have left deep scars on the country’s finances. This is one of the reasons why Berlin’s total debt has risen to a historic high of 66 billion euros. This is a mortgage that will reach far into the future. If the European Central Bank raises further interest rates, Berlin’s interest burden could rise from the last one billion euros to 1.6 billion euros in 2026.
Nevertheless, setting up the special fund “Climate Protection, Resilience and Transformation” is a step in the right direction. Berlin is thus taking on a pioneering role nationwide and is facing up to the important challenge of decarbonizing the economy. It is right to give companies incentives and subsidies for the path to climate neutrality. The goal of the fund must be a double dividend for the companies: on the one hand, investments in energy efficiency reduce their carbon footprint, on the other hand, their energy costs go down. Both strengthen their position in global competition and secure jobs.”
2023-07-11 13:14:09
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