Huber: Bavaria has to debt to stay competitive!

Huber: Bavaria has to debt to stay competitive!

Erwin Huber, former Bavarian finance minister and former CSU boss, has drawn attention to the need to ensure that Bavaria should owe in response to the bracket of municipal health insurers. In a current statement, Huber explains that it is time to say goodbye to the long -term goal of a balanced budget. He particularly emphasizes the risk that Bavaria could fall behind in economic competition, especially in comparison to Berlin. Huber warns that other federal states will already use new debt opportunities, while Bavaria is holding back with a “chaste” financial policy. This attitude could have a fatal impact on the economic performance of the Free State, since Berlin increasingly approaches Munich and may soon be over.

Huber considers a temporary debt recording justified. This measure could be crucial to maintain municipal financial strength and performance. According to Huber, it is important to look at the current situation in the light of political realities and to set the course for a future -oriented financial policy.

background to the BayernLB

A central player in the Bavarian financial landscape is the BayernLB, which acts as an institution under public law and appears as a house bank of the Free State of Bavaria. With a participation of 94 % of the Free State and 6 % of the Bavarian Sparkasse association, it is the second largest Landesbank Germany. In the past, BayernLB has tried to establish itself as a "global player" on international financial markets. However, these ambitions led to considerable financial losses that were known late and under public pressure. Participation in the Hypo Group Alpe Adria, which was associated with dubious shops and a massive loss of 3.7 billion euros, was particularly problematic. In the course of the financial crisis, BayernLB stated that the US real estate crisis affects. Previously, the burdens were estimated at 100 million euros, but this number quickly grew into the billions. In autumn 2008, the total burden was impressive 5.2 billion euros. BayernLB was the first in Germany to take 6.4 billion euros from the Federal Government's rescue umbrella.

political dimensions and the role of key players

The challenges that BayernLB faced were also influenced by the decisions of the then board of directors, whose members, such as Erwin Huber, Günther Beckstein and Kurt Faltlhauser, approved the purchase of the Hypo Group Alpe Adria. While Edmund Stoiber, the former Prime Minister, was not on the board of directors, he is still seen as a driving force behind the expansion to Eastern Europe. The Munich public prosecutor's office is now investigating ex-BayernLB boss Werner Schmidt for infidelity and presumably misconduct when buying the HGAA, which gives the impression that corruption played a role in business.