Germany’s urgent need for greater public investment

“WE’RE WORKING at the limit,” says Apostolos Tsalastras, treasurer of Oberhausen, a town in the Ruhr valley. Like many places in this region, Oberhausen sits on a vast debt pile, mostly accrued when the mines closed and the steel jobs went. Unemployment stands at 10.6%, almost twice the national rate. Last year Olaf Scholz, the SPD finance minister (and its chancellor-candidate), sought to relieve municipalities like Oberhausen of their old liabilities, but was thwarted by his CDU coalition partner. “It’s time for a fresh start,” pleads Mr Tsalastras. His town is locked in a vicious circle of declining investment, slumping tax revenue and a shrinking population.