With Merz's debt package, the Bundestag has passed a multi-year economic stimulus programme for the Landesbanken. Even if the agreement between the future coalition partners does not explicitly name their role, the planned investments in infrastructure and climate protection are part of the core business of the public-sector institutions. At the interface between the state and the banking industry, they are seen as a natural financing partner for investment projects, in the renovation of bridges and roads, and the expansion of energy and heating networks. The fact that, unlike the development banks, they compete with private sector commercial banks can only be in the interests of taxpayers.

Making up for the decades-long investment backlog can give the Landesbanks a new reason to exist. What can happen when large public-sector banks desperately look for new areas of activity was seen during the financial crisis of 2008. Germany became infected with the US property crisis via the transactions that the Landesbanks in particular entered into with off-balance sheet transactions beyond the country's borders. This cost some of the institutions their independence, and the once mighty WestLB even disappeared from the picture altogether.

Since then, the remaining Landesbanks have been fine-tuning their business models and efficiency. Sometimes, like Nord/LB recently, they get caught between their ownership groups with their sometimes divergent interests in the battle for a new IT infrastructure. The mammoth task of financing the investment projects that have now been made possible is the best argument in favour of Landesbanks being more than just the central banks of the savings banks. To avoid falling victim to the repeatedly discussed consolidation at some point, they would do well to fulfil their promotional and financing mandate with full commitment and diligence.

The goal should be clear. A significant proportion of the future projects made possible by the constitutional amendment should be labelled „Financed by your Landesbank“ – and not too hidden, please. In this way, they can heal the reputational damage suffered during the financial crisis, and at the same time strengthen the public's trust in public institutions. It should go without saying that this can only be achieved through competitive conditions and not through backroom haggling. Because even if geopolitical tensions and the new courage to take on public debt suggest otherwise – the 1970s are not coming back.

However, the Landesbanks can count on a positive boost for their bond business. This is because the future coalition parties have also relaxed the debt brake for the federal states – which helped get their approval in the Bundesrat. Issuing municipal bonds and bonds issued by the federal states is the Landesbank's core business. Because of the legally prescribed restraint, this may have almost been forgotten in recent years. Even if they do not benefit directly from the federal bonds usually placed via the Finance Agency, the expected increase in issuing activity by the federal government is good news for the Landesbanks. This is because they will also benefit from the resulting revitalisation of the secondary market, and brokerage commissions from customers.

Finally, the earmarking for climate protection, which the Greens have extracted for a fifth of the investment package, also plays into the business model of the Landesbanks. They have long since strategically anchored sustainability, and are committed to supporting their corporate customers in the transformation. Thanks to the green component of the hundreds billions that will be made available, the specialised advisory teams that LBBW, for example, has set up, can start up the sales machine.