We have a significant need for investment, especially in the areas of digital and traditional infrastructure, as well as in the transition to a CO2-free economy. There is a great opportunity for Germany to regain its competitiveness through the decarbonisation of the economy. We now need a clear plan outlining where we must invest over the next ten years, and we must follow through on, to advance our society and economy.

Savings banks are already very active in this area. Our group finances the bank based portion of the necessary future investment in line with our market share of around 40%. Savings banks have enough substance to support these investments. What this country urgently needs are reliable conditions for businesses so that it becomes worthwhile to invest again. Commercial Banks and savings banks need the necessary freedom to quickly and pragmatically support small and medium-sized enterprises in their investment projects. Additionally, we need to convince small retail investors that channelling their savings into infrastructure financing is a good idea. It is clear that a substantial portion of the necessary investments will not come from public budgets.

Security is paramount for many savers. They don't want to provide venture capital. The state, which should be the owner and operator of the infrastructure, could – if it does not invest enough itself – offer investors a minimum level of security with such guarantees, ensuring that this private capital is not completely lost.

Yes, there is still too little willingness to invest in stocks or other securities in Germany. In particular, the German population has a high need for security, which is understandable in an ageing society. However, when it comes to retirement provision or other long-term investments, securities should be part of the investment mix. This would also lead to a fairer distribution of the wealth created in our economy across the population. More and more citizens are recognising this. Interest in securities savings is steadily growing. Financial literacy can contribute to this. As a society, we still need more education and stronger financial education in schools, and also in adult education.

As savings banks, we are very active in this area with various measures, including on our social media channels. But support is welcome: That's why we welcome the government's efforts to introduce the Financial Education Strengthening Act.

In my opinion, the budgetary constraints are mainly on the expenditure side. We need to save costs to have more room to invest in infrastructure, both digital and physical. If this succeeds, it will also have a positive impact on the revenue side. Investment spending should be a priority now.

We need to invest more, and at the same time, the budgets are very tight. The tax estimate was just revised downward. In essence, we have the choice to let our infrastructure deteriorate but take on less debt, or to invest moderately and strategically in the foundations of our economic development, and incur slightly more debt. The right balance must always be maintained. Right now, we should closely examine the expenditure side and define potential savings. Once we have clarity there, we should think about the appropriate level of debt. The borrowed money must also be used for investment in the strictest sense.

What we need is less regulation and less bureaucracy. In Germany, we often engage in what is called „gold-plating“, regulating more deeply than Brussels dictates. This hinders the free movement of goods, services, and labour. Strengthening the European capital market, we are fully on board with that, even though we as savings banks would only make limited use of many aspects of Capital Markets Union.

Strengthening the securitisation market, standardising bankruptcy laws, and improving financial education are important goals. Banking Union, from our perspective, is complete. A common deposit guarantee scheme, which some are advocating, would not bring any improvement for EU citizens. We need to address the current challenges. This cannot be done with outdated measures.

No. Why should I use funds reserved for private customer security to strengthen the resilience of large cross-border banks? Either the European financial market is not as stable as we are led to believe, or proven, crisis-resistant systems are not being valued. I would like to see a closer look at the advantages of stable, tried-and-true business models that support the development of our Mittelstand economy. We have something in the German market that has grown here and works perfectly for Germany – for companies as well as for private customers. German decision-makers should recognise the advantages of the three-pillar model and promote it in Europe, rather than calling for the weakening of the system. Again: We must address the current challenges. This can only be done with stable credit structures – and we have them in Germany!

The diversity of the European banking market is clearly an advantage. It creates strong competition, which benefits customers. Regional banks are a guarantee that customers will receive good services at appropriate conditions. I don’t see why we should weaken competition, and thereby impose higher long-term prices on customers in order to further strengthen oligopolies, which already exist in some European countries. Of course, we also need large banks as financing partners for the economy. It would not be a wise move for politics to force a concentration of the banking market. Market structures should be left to the market.

It is important for European sovereignty in payments that the ECB addresses how to handle the growing trend of digital payments. However, there is no need for another quasi-governmental digital payment system. That would be an unnecessary intervention in a functioning market. It is not the central bank's role, as the currency authority and banking supervisor, to offer consumer services. There needs to be a common understanding between market participants and the ECB.

We are willing to actively shape the digital euro to create something that truly provides value for people in a modern society. My goal is a practical and consumer-oriented implementation that ensures a level playing field. As the digital euro is currently designed, its implementation would consume so many resources in IT that it would leave little room for technical innovations in our financial industry. International competitors, who would have much less effort with the digital euro, would be advantaged. Especially in times of crisis, the ECB should focus on fulfilling its existing mandate.

The interview was conducted by Martin Pirkl.