Baden-Württemberg: Kretschmann warns of tax minus

Hardly anyone remembers the times when the economy shrank.

Baden-Württemberg: Kretschmann warns of tax minus

Hardly anyone remembers the times when the economy shrank. That's a "curse," says the prime minister. Cities and municipalities would have to moderate their demands on the country.

Gerlingen (dpa / lsw) - In view of the economic consequences of the Ukraine war, Baden-Württemberg's Prime Minister has prepared the municipalities in the state for a massive downturn and collapsing tax revenues. "The financial scope will be so tight that we have to concentrate on the absolutely necessary things," said the Green politician on Friday at the Association of Mayors in the Southwest in Gerlingen (Ludwigsburg district), thereby rejecting a wide range of financial demands from the municipalities. "If it gets worse, we'll go into the red," warned Kretschmann. Cities and municipalities would also have to adapt their requirements to the changed situation. "Everyone has to see that the trees just don't grow to the sky anymore."

Kretschmann said that hardly anyone remembers that the economy could sometimes shrink. "It's a bit of the curse of a long period of prosperity that you just don't realize it." You have to scale back the entitlement. The Greens also alluded to the faltering financial negotiations with the city, community and district councils. The municipalities insist on fully covering the costs for Ukrainian war refugees, which the green-black state government rejects, citing budgetary risks from the war and the pandemic. According to reports, the state and municipalities want to deal with the topic again at a top meeting in mid-July.

The background to the dispute is that the municipalities do not want to be satisfied with small amounts this time. At the end of last year, Finance Minister Danyal Bayaz (Green) put off cities and municipalities to the double budget for 2023/2024. At that time they came with a demand of 1.4 billion euros for investments in schools, daycare centers, digitization, clinics, public transport and climate protection.

The President of the Association of Mayors, Michael Makurath, listed the numerous construction sites of the municipalities on Friday and called on the state to provide cities and municipalities with more financial support. The non-party mayor of Ditzingen emphasized the lack of staff in schools and daycare centers. He welcomed Kretschmann's appeal to the part-time teachers to work a little more, but doubted that it would be successful. "I'm looking forward to the result." When it comes to education, there is "a huge gap between legal requirements and reality". In the day-care centers there was a lack of educators everywhere. "For the parents concerned, the municipalities are the buffers for their frustration when they don't get the places."

Because of the impending gas shortage, Makurath called for quick, joint measures to be taken by the federal, state and local authorities for autumn and winter. "The next heating season starts in twelve weeks," he warned. If Russian gas stops flowing through the Nord Stream 1 pipeline after maintenance, this will quickly have serious consequences for private households and municipalities. He called on Kretschmann to take "concerted action across the country" to save energy. In addition, scenarios must be developed with civil protection on how to deal with a gas shortage in winter. "Because the citizens are standing in front of the town halls and asking what's next, and we should be prepared for that."

Kretschmann received full approval from the municipalities with his no to the relief planned by the traffic light federal government for highly indebted municipalities throughout Germany. "I'm not just going to wave that through." It is unacceptable that the federal government wants to force a state like Baden-Württemberg to show solidarity. It's about 30 billion euros. "In any case, it's not my job to pay the debts of local authorities in other countries." It shouldn't be the case that those who have managed thriftily are punished.

Kretschmann made an urgent appeal to the municipalities to expand wind power. "Wherever possible, make areas available for the energy transition." He urged to hurry in order to be able to become independent of Russian energy supplies more quickly. "I am grateful that the change of heart is spreading, also in the districts and municipalities."