Baden-Württemberg: Savings Bank President warns against excessive debt policy

Baden-Baden (dpa/lsw) - The President of the Savings Banks Association of Baden-Württemberg has warned against the assumption that debt automatically promotes growth and prosperity.

Baden-Württemberg: Savings Bank President warns against excessive debt policy

Baden-Baden (dpa/lsw) - The President of the Savings Banks Association of Baden-Württemberg has warned against the assumption that debt automatically promotes growth and prosperity. The equation "higher debt equals higher growth and prosperity" does not work, warned Peter Schneider on Wednesday at the association's municipal forum in Baden-Baden. 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 immense explosive power on site," said the association president. 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." Here, the municipalities in Baden-Württemberg are in a very good position compared to other federal states, he said. "Especially since maintaining debt sustainability is an important part of sustainable action. This is often forgotten in the whole sustainability discussion."

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.