Baden-Württemberg: President of the municipal council: Politics must set priorities

Energy crisis, corona, refugees, digitization and climate change: Municipalities, cities and districts in the southwest face many challenges.

Baden-Württemberg: President of the municipal council: Politics must set priorities

Energy crisis, corona, refugees, digitization and climate change: Municipalities, cities and districts in the southwest face many challenges. The municipal forum of the Savings Banks Association was about how politicians deal with it and what that means for citizens.

Baden-Baden (dpa/lsw) - In times of war and crises, politicians must stabilize people's trust in the state and its institutions, according to Steffen Jäger, President of the Baden-Württemberg municipal council. "Especially in such a multiple crisis, the trust of the population in the political action of the state is of particular importance," said Jäger, according to the association, on Wednesday at the municipal forum of the Baden-Württemberg Savings Banks Association in Baden-Baden. "Trust is established when the state delivers what it promises," said Jäger, emphasizing: "If we look honestly, we have to realize that the sum of political promises and commitments can no longer be fulfilled."

Jäger referred to the "BaWü check" that the Institute for Demoscopy Allensbach regularly carries out on behalf of the daily newspapers in the south-west: According to the latest results from August, only a fifth of the people in the country are looking forward to the next twelve months with hope - so few like no "BaWü-Check" before. Jäger made it clear that almost every third person is looking to the next few months with pronounced fears, and just as many with skepticism.

"Germany is experiencing a large number of crises on a scale that we have not had and have not had to experience since the Second World War," said the president of the municipal council. For example, ensuring energy security, taking in more than 130,000 refugees, coping with inflation socially, securing Germany as a business location and the climate crisis demanded the state “to the limits of what is affordable,” said Jäger.

Without setting priorities, without a clear focus on the essentials, this will not succeed. "The much-cited turning point changed the world," he said. "We need to focus on the future viability of our society."

Meanwhile, the President of the Savings Banks Association of Baden-Württemberg, Peter Schneider, warned that the equation "higher debt equals higher growth and prosperity" does not work. Supply chain problems, energy shortages and skyrocketing prices after Corona and the war, but also perennial issues such as digitization, climate change and demographics primarily affect the municipal level. "Because municipalities are always closest," said Schneider, according to the speech manuscript, in front of hundreds of municipal representatives. "For you in the municipalities, there are challenges with an immense explosive force on site." Cities, municipalities and districts would have to ensure the existential operation of clinics, nursing homes, schools and daycare centers.

"It's easier for the municipality that has as little debt as possible, because then there is a greater ability to act," said Schneider. The municipalities in Baden-Württemberg are in a very good position compared to other countries. "Especially since maintaining debt sustainability is an important part of sustainable action."

Schneider sees a major shortcoming in digitization: "In Germany we talk a lot about digitization, autonomous driving and artificial intelligence. But we still have the same dead spots as 20 years ago." There is still a lot of room for improvement here.

As a result of the energy crisis and inflation, many people could no longer put money away. "More than 40 percent of households are no longer able to save - with a strong upward trend," stressed the President. "Across the board, the ability to save is eroding in view of unprecedented inflation rates of ten percent in the Federal Republic." The demand for private real estate loans has dropped noticeably in recent months and has almost come to a standstill in some cases in the past few days.

"We are not only in a recession with one foot, but with both feet," said Schneider, referring to a forecast by the Landesbank Baden-Württemberg, according to which the gross domestic product in the southwest should grow by 0.9 percent this year but will shrink by 1.9 percent next year. The minus would be significantly larger than in Germany (0.9 percent).

"Medium-sized companies as well as large companies, but also the municipal utilities, every company that depends on energy is affected," he made clear. The same applies to trade through consumption. "And we have to be prepared for the fact that we can probably fall even further," said Schneider. "The decisive factor will be how long this goes."