Flood aftermath - Floods put Saarland in financial difficulties
After the heavy floods during Pentecost, Saarland intends to take out emergency loans in the amount of up to 94 million Euro. The Saarland parliament in Saarbrücken will therefore officially declare a natural disaster at its plenary session today (beginning: 9.00), which will significantly affect the financial situation of the state in 2024. This is to allow for higher indebtedness, which is only possible for disasters that cannot be controlled by the state. At the same time, the Landesparlament must pass a supplementary budget for the years 2024 and 2025.
In an SPD-faction proposal for declaring the natural disaster, it is stated that, according to estimates from the insurance industry, private damage from the flood disaster between May 16 and 21 was around 200 million Euro. At least 75 million Euro are needed for damage repair in municipal infrastructure in the Saarland. The Saarland currently has an SPD-minority government.
However, Saarland hopes that it will not need or only partially need the additional credits: Due to the census 2022, which is expected to result in a population of over one million people, the state would receive annual additional revenues of 200 million Euro from the federal financial equalization. However, it is still unclear when these funds will actually be available, so the green light for new credits is necessary.
- Despite the SPD-faction's estimation of 200 million Euro in private damage from the flood disaster, Saarland is intending to seek emergency loans to cover potential costs, amounting to up to 94 million Euro.
- The natural disaster declaration in the Saarland parliament in Saarbrücken will address the financial difficulties resulting from the heavy floods during Whitsun, which are expected to significantly impact the state's budget in 2024.
- The SPD-minority government in Saarland is advocating for the debt brake to be temporarily suspended due to the flood disaster, as it falls under the category of a natural disaster that cannot be controlled by the state.
- In the aftermath of the flood, Saarbrücken and other parts of Saarland have faced significant damage, with at least 75 million Euro required for repairing municipal infrastructure.
- The flood-induced losses in the millions have imposed financial burdens on the state, which may require additional credits to manage its financial situation, given the potential future revenues from the census 2022 are yet uncertain.
