Joachim nagel to become new bundesbank president

Finance

Economist joachim nagel to become new president of the bundesbank. German chancellor olaf scholz (SPD) and finance minister christian lindner (FDP) proposed the 55-year-old to succeed jens weidmann, as lindner announced on twitter on monday.

Previously, the "handelsblatt" and the "spiegel" had reported on the appointment. The appointment still has to be finally decided by the cabinet. This is expected to happen this wednesday, said a government spokesman. Nagel is to take office on 1. January to start work.

Weidmann resigns for personal reasons

Weidmann had announced in october that he would leave office on 31 december after more than ten years in office. December resignation for personal reasons. Nagel, who is a member of the SPD, was already a member of the bundesbank’s executive board from 2010 to 2016, after which he moved to forderbank k and currently works at the bank for international settlements (BIS), which is also known as the central bank of central banks. He studied economics in his native city of karlsruhe and earned his doctorate at the university there.

Lindner stressed that in view of inflation risks, the importance of a stability-oriented monetary policy is currently growing. Nagel is "an experienced person who will ensure the continuity of the bundesbank". Nagel stands for monetary policy stability, the appointment is a "good signal to the german people as well as to europe.

Banking associations and economists welcomed nagel’s nomination. This means that "an expert with many years of experience in central banking and an excellent knowledge of the financial markets will be at the helm of the german central bank," said the president of the federal association of german banks (bdb), deutsche bank CEO christian sewing. Savings bank president helmut schleweis is convinced that with nagel at the helm, the bundesbank will "continue its tradition of a stability-oriented monetary policy.

Bavaria’s finance minister albert furacker (CSU) also called on nagel to continue the bundesbank’s stability-oriented course. "I am also counting on the new bundesbank president-designate to resolutely counter the misguided developments of the ultra-loose monetary policy in the euro area," he said. The european central bank (ECB) is increasingly softening the boundaries between monetary and fiscal policy; crude purchases of government bonds had to stop.

Weidmann, former economic advisor to long-serving chancellor angela merkel, also repeatedly voiced criticism of the ECB’s ultra-loose monetary policy that has been in place for years. He was especially skeptical about the billions of dollars in bond purchases and warned that the central bank should not make governments dependent on cheap central bank money.

In view of rising inflation, weidmann warned that europe’s guardians should not ignore the risk of too high inflation and should not stick to their very expansionary course for too long. Weidmann’s stance has often not prevailed. Because the supporters of a rather loose monetary policy have the majority in the ECB’s governing council.

Although the president of the bundesbank participates in the decisions of the central bank’s highest decision-making body, he has only one vote, as do the representatives of the other 18 euro countries – even though germany is europe’s largest economy.

Hopes for savers

The president of the federal association of german volksbanken and raiffeisenbanken (BVR), marija kolak, associates nagel’s appointment among other things with the hope that the bundesbank in the ECB’s governing council "will work for an early end to minus interest rates in the interests of savers".

According to stefan kooths, head of the economic department and vice president of the institute for the world economy (i/kiel), nagel was among those "who put forward counter-arguments to the current ultra-expansive monetary policy. But kooths qualified: "at the same time, nagel’s appointment does not change the majority situation in the ECB’s governing council. The supporters of the loose monetary policy can therefore look forward to the new head of the bundesbank."The first monetary policy meeting of the ECB’s governing council in the new year is scheduled for 3. February.

May 24, 2023 by 0Comments
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Steinbach invests millions in children

"We will lead our three kindergartens into the future" – this resolution was passed unanimously at the december meeting of the steinbach town council. Extensive preparatory work and discussions with the parties concerned were necessary in order to bring their ideas to a common understanding. A herculean task, as mayor thomas loffler (CSU) said at the time. Now, in the course of a meeting of the committee for school, family and social affairs, in the presence of representatives of the daycare centers, the parents’ advisory council and the church administration, he informed them about the planned renovation, conversion and expansion measures as well as about the demand situation.

"Currently, the kitas are overcrowded", in his review of the gradual development to date, the chairman explained that there were. In 2018, a survey of parents of children from zero to twelve years of age was carried out for the needs analysis. The needs plan resulting from this and from the occupancy figures of the daycare centers was recognized by the municipal council – as a basis for the application of the respective church administration to the archdiocese, the municipality and the government.

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In 2019, the discussion about the future position of the three daycare centers was intensively pursued – with the basic decision taken at the end of 2019 to maintain all three facilities and to expand them through modernization, conversion and renovation, respectively. To bring forward an extension. For this purpose, appropriate alternative or alternative solutions have also been found. We need to find temporary quarters.

"This has already happened in steinbach am wald", the chairman explained that the old parish house had been modernized for this purpose, mainly on the company’s own initiative. For the particularly overcrowded buchbacher kiga st. Elisabeth, there had been some tense discussions with regard to an alternative quarter. After examining the various options, a very good solution was found in the former buchbacher kindergarten in the center of town, which will be available for use from the coming kindergarten year. There is sufficient space in windheim. There are problems here due to the low ceiling heights in the basement and the. Keller "only problems with the construction, which, however, would continue to be tolerated by the district office as the supervisory authority.

"This year, we have brought the plans to a stage where they are ready to be applied for", loffler was pleased to now have a planning status for all three facilities and to be able to submit them as a request for proposals.

Municipality should take over

For the steinbach daycare center. Franziskus there were twelve planning options. In the meantime, the final plan is available, with which there is general agreement. The outer shell of the institution had been renovated about ten years ago, but the inner rooms were completely worn out after 40 years. In buchbach, there were the alternatives of attaching in three different sky directions. The variant of an extension in the direction of a multigenerational house was rejected, since this would also have affected the festival site. The extension is now to be built in the direction of kirchgasse.

"A significant factor is the cost side", emphasized the chairman. Although all three buildings are owned by the local catholic church foundations, the basic responsibility lies with the municipality. At the request of the parish council, the church was to retain ownership of the building as well as of the building itself. "However, the archbishopric of bamberg has a clear position that ownership should pass into the hands of the community", loffler made it clear that this transfer of ownership would entail large sums for the community – from the current investments to the follow-up costs. However, the opinion of the archdiocese is not to be disputed. If the municipality does not expand, the church will continue to run the daycare centers, but only with the number of children permitted for the existing buildings. "However, this is not our intention", he made clear.

With regard to the current investment costs, the church would participate in the non-requirable cost share. The cost of the request depends on the financial situation of the municipality. Since steinbach is in a good position, it will "only" receive funding from the government a FAG demand of 30 percent. With total costs of two million euros for the steinbach facility, the municipality – after deducting the church’s share – would be left with an own contribution of 1.3 to 1.4 million euros. However, the demand situation has not yet been clarified in detail.

Money from the economic stimulus package?

At the end of august, the fourth special investment program – which has once again been fully utilized – will expire. It is not yet clear how far this will be extended another time. However, a new approach is now in place which could prove to be successful. Thus, in the wake of the corona crisis, a new economic stimulus package with a total volume of 1.5 billion euros for the expansion or. The renovation of kindergartens. "This could be a perfect fit for us", he hoped. It is important to have the plans already in the drawer when the demand program comes out.

There will be applications for all the demanded items. At present, the budget situation looks quite good again and reserves are available to be able to realize the projects in 2021. Should the demand program not be so effective in detail, the measures will be implemented one after the other in the course of a four-year plan. "But we are in good spirits", he said.

The next step will also be to prepare the building lease for the three facilities. Thus, three different processes are currently being worked on in parallel – the submission of applications for the building permits, the preparation of the transfer of ownership and the submission of the building applications. A transfer of the land of the church to the parish – as requested by tamaz chinchaladze (BLS) – is not possible under foundation law, only in the case of an exchange of a comparable building plot. According to the mayor, this would be relatively easy in buchbach; in steinbach and windheim it would be necessary to draw a clear line due to the existing spatial connection with the church and kindergarten, respectively. The parish house, however, difficult.

While the final plans for the steinbach daycare center had already been presented to the committee by the schottner architectural firm, the agreement of those responsible for the facilities in buchbach and windheim was still required. They were very impressed by the plans subsequently presented by the mayor. For steinbach, the total cost is 2.005 million euros, including ancillary construction costs and equipment. The existing building of 486 square meters will be extended by 275 square meters.

Double flat in buchbach

In buchbach, the annex is to be built to the rear, but offset slightly upwards because of the sun’s rays. The stock of 232 square meters is expanded by about the same flat. For the cultivation a flat of 100 square meters of the adjacent field is needed, for which the owner has already declared his agreement. The cost estimate here is 870,000 euros, without the land and without the costs determined by the expert planners. For example, the heating system is already old. "How deep you go into stock renovation depends on the demand program", the mayor clarified.

The same also applies to the kindergarten st. Nikolaus windheim, where the stock is extended to the front. For this also the garage must disappear. In the lower area respectively. In the basement, a dining room for the children with kitchen and pantry is to be created, for which the room height is sufficient. In terms of costs, one calculates here with about 810 00 euro, also without the expert planner costs.

"I am very happy for the kindergarten", stated angela wiegand (CSU), who also suggested applying for a k-loan subsidy for energy renovation. Anke weib (CSU) suggested, among other things, thinking about a solar or photovoltaic system. The mayor had already brought this forward; however, the planning offices were not "enthusiastic" about it for economic reasons. However, the planners will investigate alternatives.

"It was a great relief for all of us today", churchwarden manfred fehn showed his gratitude – under rough applause – afterwards.

May 10, 2023 by 0Comments
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