SPD leader Homann: Get Saxony Fund off the ground

Saxony's minority government now wants to get down to substantive work quickly following the adoption of the double budget by the state parliament. It is a matter of tackling the ambitious coalition agreement and completing homework, said SPD party leader Henning Homann in Dresden. In his view, the most urgent task is to get the agreed Saxony Fund off the ground. It will initially manage the money from the federal government's special fund.

SPD: 2027/2028 budget not without new debt

The Saxon government would like to use the funds primarily for hospitals, disaster control and the Southwest Saxony Master Plan for structural change in the region, which is dominated by the automotive industry. Saxony intends to manage without borrowing in the current double budget for 2025/2026. However, Homann assumes that there will be no way around borrowing for the 2027/2028 budget. It will not be possible without new borrowing.

According to the SPD, borrowing is an economic necessity

"This is not a debt fetish, but an economic necessity," said Homann. Even conservative economists and the economy would say that investment is necessary, especially in times of transformation. "That's why I am firmly convinced that the SPD will ultimately be right on this point."

In contrast, the ranks of the coalition partner CDU had repeatedly warned against taking on debt. An amendment to the Basic Law will allow the federal states to take on 0.35 percent of gross domestic product as debt in future, just like the federal government.