"Unique Talent, Deceptive Spectacle: Berlin's Expenditure Leaves Commune Residents in the Rainstorm"
In a time of pressing economic challenges, the need for meaningful investments in Germany's infrastructure, digitalisation, education, and energy supply has never been more urgent. The mayors, being in direct contact with the issues at hand, are taking the lead in addressing the problems, as they understand the urgency and do not have the luxury of time for federal bureaucracy.
However, the federal government's approach to addressing these issues has been met with criticism. The Staatskonsum special fund, intended as a means for state consumption disguised as investment, has raised concerns. This fund, which allocates 2.5 billion euros for bridge renovations, for instance, has only resulted in a net gain of 600 million euros, enough to renovate 40 bridges per year.
The special fund, if mismanaged, could be a waste of money and a slap in the face for municipalities that have been struggling for years. The fund does not address the need for reforms in the municipalities, as it does not take over the old debts of the municipalities and continues to claim 85% of the revenues while the municipalities bear 24% of the expenses.
The article also mentions a 186 billion euro investment backlog for municipalities, with schools, daycare centers, and administrative buildings in need of repair. Real investments are needed to bring returns, not just voter voices, according to the article.
The hope of debt paying itself off through growth only works with real growth drivers. The federal government and states need to relieve municipalities of debt to enable them to invest in much-needed projects that generate value added, not into the next social pot because of a state election.
The entities willing to use the special fund for actual investments include 61 leading companies and investors participating in the "Made for Germany" initiative, committing to a three-year cross-sector investment pledge of 631 billion euros, as part of Germany's 500 billion euro, 12-year special fund for infrastructure and climate neutrality.
Public-private partnerships should be utilised to ensure the effective and efficient use of resources. The dreams from Berlin, such as the green growth shift and the debt brake with a loophole, do not help locally. What helps is the power to act, planning security, and a little more trust in those who really work.
The special fund does not finance the future but patches up the past with money that the country no longer has. Every cent from the special fund needs to show clear impact, not just be administered. The special fund is a political litmus test for the future of the next generation, with the municipalities being ready but the question remaining if Berlin is also prepared. The federal government lacks the courage for economic truth, and only projects with leverage will get the country out of its current predicament.
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