Local Governments - NRW intends to allocate 7.5 billion euros to clear existing debts.
North Rhine-Westphalia's government intends to allocate 7.5 billion euros from its own resources over the course of 30 years, starting in 2025, to aid local governments in lessening their existing debts. However, solving this issue demands cooperation among the state government, federal government, and the municipalities, as per Minister President Hendrik Wüst (CDU), who spoke after a cabinet meeting in Berlin on Tuesday.
Wüst believes the federal government should also provide a similar budget, resulting in municipalities receiving €500 million annually. With the federal government's commitment to reducing debt in its coalition agreement, Wüst is confident they'll fulfill their pledge. Federal Finance Minister Christian Lindner (FDP) has already presented certain elements NRW supports as a starting point for negotiations.
A potential constitutional amendment for debt reduction would be the federal government's responsibility, insists Wüst. He also requests that the federal government disclose how they envision municipal participation in the process.
NRW's Minister for Urban Affairs and Regional Development, Ina Scharrenbach (CDU), states that the provisional value of municipal loans in North Rhine-Westphalia totaled nearly €21 billion by the end of 2023.
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The allocation of 7.5 billion euros by North Rhine-Westphalia's government is aimed at helping Municipalities in lessening their debts. This initiative falls under the leadership of Minister President Hendrik Wüst (CDU), who emphasized the need for cooperation between the state government, federal government, and Municipalities. Wüst further called for the federal government to contribute a similar budget, potentially resulting in annual allocations of €500 million to Municipalities.
In light of the federal government's coalition agreement to reduce debt, Hendrik Wüst is optimistic about their commitment being fulfilled. He also suggested that a potential constitutional amendment for debt reduction should be the federal government's responsibility. Additionally, Wüst requested transparency from the federal government regarding their vision for municipal participation in the process.
According to NRW's Minister for Urban Affairs and Regional Development, Ina Scharrenbach (CDU), the total value of municipal loans in North Rhine-Westphalia reached nearly €21 billion by the end of 2023. This figure highlights the significant financial burden on Municipalities, making the proposed debt relief measures all the more important.
