A former leader of the Christian Social Union in Bavaria, Erwin Huber, has advised the state government to take on debt. In an interview with the Süddeutsche Zeitung, Huber stated, “I believe that Bavaria must bid farewell to the balanced budget.”
According to Huber, the greatest need is in the municipalities, which are urgently demanding financial support from the federal government and the state. “I believe that the difficulties with federal funds alone cannot be solved and the state must lend a hand” said Huber, who served as Bavarian Finance Minister from 2007 to 2008. Without necessary investments, particularly in childcare and functional schools, the Free State of Bavaria risks being left behind by other German states, he warned.
In the face of the ongoing economic slump and strained finances, Minister-President Markus Söder, of the Christian Social Union, has not ruled out new debt, but has postponed the decision until the fall. “For Bavaria, solid finances are important” Söder said during the latest cabinet retreat. This line of thinking will be adhered to and he referred to the debt brake as a “Bavarian trademark.