Bruno Hollnagel, September 18, 2020, European Central Bank – Negative Interest

German Bundestag, September 18, 2020, Plenarprotokoll 19/177, pp. 22262-22263. 

Right honorable Herr President. Right honorable ladies and gentlemen.

So as to anticipate: It is not for me to question the independence of the ECB. It however, first, may not interfere in the rights of others and, second, must guarantee the proportionality of its means of action and thus keep an eye on the extensive effects of its doings.

In regards interference in the rights of others. In that the German Bundesbank, charged by the ECB, collects negative interest and ultimately pays over the earnings to the state, that practically works as a tax. For that reason, Professor Elicker, in his brief of February 2020, spoke in this relation of a “mechanism which in its effects is equivalent to a special tax”. That is the mechanism which is here being implemented. To parliament alone, however, is given the taxation authority. We ought not to hand over this right.

In regards proportionality. Professor Knops in his opinion of October 2019 wrote of the efficacy of negative interest - I cite: The ECB's measures violate the subsidiarity principle (Art. 5, para. 5, EU Treaty) and the fundamental of proportionality (Art. 5, para. 4, EU Treaty).

In evaluating the proportionality of the ECB’s measures, the following points are especially to be considered:

Zero and negative interest, regarded in economic terms, is absolutely absurd. No one with a healthy common sense would give money to anyone knowing that he is guaranteed to get back less.

It would be more sensible to keep the money under the pillow.

Negative interest has two effects on banks: First, it depresses the overall interest level. The danger thereby increases that the interest received by the banks no longer covers the risks. Second, negative interest robs banks of capital so that they are less in a position to take on risk.

That altogether endangers the financial stability of Germany. Ostensible solutions like associations of liability and synthetic bonds only disguise the situation, yet do not solve the problem.

            Lisa Paus (Greens): Complete rubbish! You should read Frau Schnabel for once!

We all know: Low interest leads to mis-allocations of capital [Kapitalfehllenkungen]. It produces bubbles which later burst and produce great economic damage – for example: Spain.

Too low interest misleads to the taking up of more credit than is healthy. In Germany at the end of 2019, there were on hand 330,000 so-called zombie firms; the Creditreform [debt collection agency] presently speaks of 550,000 zombie firms. That is a firm which, without new credit, is no longer in a position to survive. According to the Creditreform, their number, as a consequence of the lockdown effects, can still climb to 700,000 to 800,000. The sword of Damocles is poised over Germany’s financial sector.

Not only are savers negatively affected by low interest but naturally also insurance companies and pension funds and thus practically all citizens. Too low interest removes the interest rate pressure from the market with the result that, first, economic efficiency declines and, second, the purchase of firms is facilitated; that means: Business concentration.

Overall, it is established that negative interest by means of uneconomic resource allocation produces economic weakness.

Ladies and gentlemen, I am of the opinion: The ECB policy interferes immoderately in the rights of the parliament and that its policy is disproportionate. We must do something to oppose that; for example, in which we in common consider whether we do not reimburse the negative interest.

Thank you.

 

[trans: tem]

 

 

 

Michael Espendiller, October 1, 2020, 2021 Budget – Research

German Bundestag, October 1, 2020, Plenarprotokoll 19/180, pp. 22745-22746.

Right honorable Frau President. Right honorable colleagues. Dear spectators in the hall and on YouTube.

Today concerns the estimate [Etat] of the Federal Ministry for Education and Research for fiscal year 2021. It is the same for this estimate as for the entire budget: Where is the required consolidation concept? The government delegations of the Union and the SPD make debts, debts and yet more debts and thereby wish to distribute large-scale election gifts in the election year 2021 at the cost of coming generations. That is irresponsible.

            Götz Frömming (AfD): And how!

It is also the case in the field of education and research. The estimate may indeed be 70 million euros smaller than in this year. Yet here are to be discerned no efforts to reduce in any way the new indebtedness or to place for once basically all expenditures under examination. We have no share in this debt orgy.

However we will do our job, Frau Karliczek, and will show with our motions to amend where the money in your estimate is being thrown out the window.

I might be permitted to address two things today. One of which is the national hydrogen strategy to which you indeed have referred. This is the new holy cow in the fight against climate change. This proposal is nothing other than the introduction of an eco-socialist planned economy on Federal German territory.

            Karamba Diaby (SPD): Boring. Always the same terminology. Isn’t that boring?

It should be thought that the CDU and SPD politicians have learned something from their epic failure of breakdowns at the BER airport. Fourteen years construction time, six broken opening dates,

            Yasmin Fahimi (SPD): We are speaking on the Federal budget!

total costs of 6.4 billion euros and thereby three times more expensive than originally planned.

            Gabriele Katzmarek (SPD): Wrong function!

This story of incompetence shows that the state is not the better businessman.

What has our insane government learned from that? Nothing, absolutely nothing. Since it is desired to now repeat these failures, and this time drive to the wall entire sectors of the economy. Yes, hydrogen will be one of the basic components of a future energy supply.

            Kai Gehring (Greens): How can one with such a logic become a doctor?

Yet that the Federal government itself now wishes to become a businessman will lead to an incineration of money on an unheard of scale. On that account, we demand that Federal government be thrifty here and leave this segment of the market to the private sector.  

The government can willingly invest in basic research on the subject of hydrogen, and it certainly is doing so. Yet on the whole, we invest much too little in basic research. That is indicated especially by the other important subject, the second of which I wanted to address: Nuclear energy. Around the world, there are at this moment improvements in nuclear energy and research into new reactor concepts. Fourth generation nuclear reactors are safer than all previous ones

            Karamba Diaby (SPD): Safer?

and can radically neutralize our disposal problem, by which atomic waste can be used for energy production.

Yet in Germany, none dare approach this taboo. Not one of you allowed research to be permitted in the field. All of you here close your eyes to the giant potentialities which can make our energy supply clean, safe and advantageous for all.

           Vice-president Claudia Roth: Herr colleague, do you allow an interim question                                            or remark?

The same as a brief intervention. I would prefer now to continue.

            Vice-president Claudia Roth: Good.

You do all that out of pure angst and ideological delusion.

            Timon Gremmels (SPD): Of your delegation?

We of the AfD Bundestag delegation are clearly in favor of nuclear power and new reactor research.

And we are the only ones who see it so. It was the former Federal Chancellor Helmut Schmidt of the SPD who said the following – I cite:             

I find it astonishing that among all the great industrial states of the world – from the U.S.A. to China, Japan and Russia – the Germans are the only ones who believe they could get along without nuclear power. We have practically given up our coal mining, we have as good as no oil in the ground and nothing off our coasts. It is therefore obvious that Germany is to obtain part of its energy from nuclear power.  

            Götz Frömming (AfD): A good man!               

            René Röspel (SPD): Out of an old newspaper!

That comes from the former SPD chancellor. We should all think over these words and be more open to and courageous in research.

Many thanks for your attention.

 

[trans: tem]

 

 

 

Martin Hohmann, October 1, 2020, 2021 Budget – Justice

German Bundestag, October 1, 2020, Plenarprotokoll 19/180, pp. 22647-22648. 

Right honorable Herr President. Honorable Frau Minister. Dear colleagues.

The Justice Ministry is responsible for the examination and lawful execution of statutes. To that extent, it is obliged to be an office of watchmen. And not a few statutory initiatives emanate from the Justice Ministry. We have even heard some announcements in this line from the mouth of the minister.

In the Corona crisis, unexpected, highly charged questions have been presented for careful consideration. What is a single life worth? It was decided that the potential endangerment of a life outweighs any economic damage. This judgment permits one other question, which in everyday practice and execution of the law has long since been decided, to appear in a new light. I am thinking of the question of §218 of the penal code [termination of pregnancy]. It will surprise you that I, similar to the forces on the left of the spectrum, want to here plead for an abolition of this provision, albeit from a different perspective.

I have a wish to make, a dream, that a process of re-thinking and of re-cognition presents itself in a new self-understanding which may make §218 superfluous. This understanding is primarily shaped by seeing the prospects with which each new life is invested. In the Gospel of John it says, “…I am come that they might have life and have it abundantly”. From this abundance may be expected a new Wolfgang Amadeus Mozart or a new Mother Teresa. This abundance preserves an optimistic view of the future. Yes, it vests in us.

Yes, we can bring about a change. In that regard, it may help to consider that what we have received as a gift, what we in abundance enjoy, life, we may not withhold from people in its early stages. It is a question of justice. The same prospect pertains to each life from the beginning. It is therefore necessary to place empathy for life at the center, in the home, in the schools, in all public life. As a people we are also required to solve our problems with our own powers and not by the poaching of people from other countries or continents.

            Mechthild Rawert (SPD): Are you speaking of the skilled labor shortage?

Consider next week: Sustainable policy. If we in this way discover anew the value of unborn life and prepare more strongly than previously the public resources for this duty of the future, then may an optimism be brought about.

Ladies and gentlemen, I am in principle disinclined to involve my own family and personal surroundings in politics, in political work. Today I want to make an exception with the following, concluding picture: About a year ago, I was sitting in the early evening at home at the kitchen table reading. I heard the approach of little steps outside the kitchen door. Slowly, the door handle was pressed down. My three year old granddaughter – she lives with her family on the floor above – came in. I turned to her. She came near. She stood before me, we looked at one another. She lay her hand and her little head on my knee. I stroked her hair.

            Steffi Lemke (Greens): Say, it’s good now!

We glanced again at one another. She went to the door, left the room and closed the door. There was not a word during this brief scene.

            Steffi Lemke (Greens): Embarrassing! Something so embarrassing!

Dear colleagues, this encounter fills me to this day with a deeper, more creaturely gratitude.

            Ulli Nissen (SPD): What might your granddaughter say when she reads                                                    your speech?

I wish you all similar fortunate, blessed moments. I want to suggest a corresponding initiative of new reflection.

Thanks.

 

 

 

[trans: tem]