"Volkswagen is untouchable in Lower Saxony"

Country's finance minister Möllring

Lower Saxony wants to reduce the budget deficit to zero by 2017. Since the tax helps blessing of Volkswagen. Finance Möllring wants to keep the country must share. But he's participation at Hannover Airport is in the FAZ interview for discussion.
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24th August 2011 2011-08-24 15:22:56

Mr. Minister, you know what's happened in the last five minutes?

Lower Saxony's finance minister Finance Minister Hartmut Hartmut Möllring What should have happened?
The mortgage loan debt of the state of Lower Saxony rose by € 19 000. Every second will be added 62 €. You must be terribly hurt but as finance minister.


Yes. And of course it hurts even more because we were actually in Lower Saxony on the right track. If the financial crisis did not come 2009, we have reduced the budget deficit to zero a year later.
Instead, the debt has risen again. Currently there are, depending on reading, 53 to 58 billion euros. How you want to come down there?

Right now the taxes run satisfactorily. We expect this year and next, together with additional revenue of 1.1 billion euros.
Where does the warm rain of money?
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About

   * 6.5 billion euros: Volkswagen triples its profit
   * Lower Saxony is considering selling part of VW shares
   * "Sparkassen be 10 billion euros in new loans"
   * After HSH debacle: the rotten system of state banks
   * Merkel to the VW Law: United against the leader of the pack from Stuttgart

VW is booming. That's what we remember of course. The automaker has six works here. The agricultural economy is doing well. Half of the chicken and pork for a third of the whole of Germany come from Lower Saxony.
But that's not enough, especially as the economy deteriorate. The Taxpayers' calls to stop the march to the state debt through unpopular measures.

We were the first state, which has canceled his official Christmas bonuses. We have cut the county government and carried out an administrative reform. On the other hand, we have increased spending on 5 star hotels in education. When the Association of Taxpayers, the population convinced that we need no education, we save a lot of money.
The Court has warned that 26 000 places would be degraded in the provincial administration, to keep the bureaucracy affordable, because of the demographic development.

This number is not traceable.
The country has 180 000 employees, you do not see any action?

In administrative expenditures per capita as well we are compared with the other provinces.
Once again: What do you do to reduce debt?

We have a clear line. We want to reduce the debt every year, so it is at zero in 2017. We have proposed a constitutional amendment.
This also makes exceptions in which soften the debt brake, which you have committed themselves so well.

No. If we increase during an economic crisis or other emergency, the extraordinary debt yet again, we must also decide on an mortgage amortization schedule for these loans.
What the opposition says about this proposal? For a constitutional amendment to require the approval of the SPD.

The talks between the factions run. The ban has worked out a debt commission headed by Oettinger and Struck. Struck is known from Lower Saxony and member of the SPD. It would be funny if the SPD would deny the constitutional amendment here in Massachusetts.
Lower Saxony owns 20 percent of VW shares. Even after the recent price slide, you can redeem for premium loose package including more than 10 billion euros - and make himself immortal as a debt-lowering drugs.

VW is untouchable in Lower Saxony. The Group is the largest employer in the country. And that he should stay.
The VW is also when you sell the land share. BMW also still produced in Bavaria, although the Free State is not involved in the company.

VW has a different history than BMW. The VW's share fell to Lower end of the fifties in the womb. Through our statutory blocking minority, we can prevent plant closures or relocation office.
Are you afraid to be punished with a phase-out of voters' VW?

Yes. The emotional ties to Volkswagen is very strong. The axis is very low in VW.
Lower Saxony holds 26.5 percent and the steel group Salzgitter. Why?

Salzgitter had already been taken over or shut down, if we were not there on board. Coal and ore must always first be trucked. For this transport, the Rhine is more favorable than the Midland Canal.
Their share from 35 percent at Hanover airport, you could sell.

This proportion is in fact not written in stone. Finally, an airport can not move easily. But I do not know if anyone is interested at all.
And then there's the North German state bank. Fusion partners complacent?

We have no natural partner for the Nord LB. The only national bank that would suit us would Helaba. Which will not. And we also do not want.
Why not?

Helaba sits in Frankfurt. As you can imagine, where the fall after a merger decisions would be. Certainly not in Hanover.
And HSH Nordbank?

HSH has two drawbacks. First, where the investment banker Christopher Flowers is committed. As would be our co-owners, the savings banks did not participate for reasons of principle. Second, a merger may face an enormous risk concentrations. Nord LB and HSH are among the five largest logistic services ship financiers of the world. Then we would not 2000 but 4000 ships in the bank. That no one wants.
After the planned capital increase, the proportion of Lower Saxony to the north of LB is currently 42 percent is expected to increase to 57 percent. This will be reflected in the supervisory board?

We will get a more representative on the supervisory board at the expense of Lower Saxony's savings bank association.
If the Nord LB to finally become the plaything of politics?

We have no national bank, to arrange the finance minister or the prime minister can, that this or that company is to get a loan. That would simply infidelity. We also want to reduce our share of long-term back and return to a balance between savings banks and countries. This will happen because the bank buys shares and feeds us.
Bavarian Governor Seehofer has agreed with Baden-Württemberg's Prime Minister Kretschmann on the formation of a "Federalism Commission III", to develop core principles for reform of the fiscal equalization. Do you want to get involved?

No. I'm reluctant in commissions, of which I expect no result.

Interview by John Ritter.