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Saarland receives additional budget allocation for flood-related expenses

Saarland intends to mitigate the aftermath of the 'Pentecost floods' by accruing additional debt, contingent upon the failure to secure alternative financing first.

Amidst the flooding calamity, the state legislature is poised to approve an extra financial plan.
Amidst the flooding calamity, the state legislature is poised to approve an extra financial plan.

Following a devastating flood incident in May 2024, affecting the Saar, Nied, and Blies rivers, the Saarland allocated a budget of approximately 93 million euros to address the crisis. Despite the debt limit, this additional borrowing was authorized due to the state parliament officially declaring a natural disaster that significantly impacted the state's financial health. These exceptional credits have been classified as "special assets" in the supplementary budget for both 2024 and 2025. Repayment of the loan is scheduled to commence no later than ten years after 2027.

The floods resulted in extensive damage throughout the state, with the insurance industry estimating the total private damage at around 200 million euros. "In times of crisis, we stand united," remarked Finance Minister Jakob von Weizsäcker (SPD). Approximately 75 million euros was allocated for repairing the damage to the state's infrastructure and municipalities, with 18 million euros earmarked as "flood aid" for private individuals. Funds were also set aside to enhance flood protection measures.

Criticism concerning inadequate federal aid

"This supplementary budget is essential and justified," stated MP Stefan Thielen (CDU). He voiced concerns over the insufficient federal aid, despite Chancellor Olaf Scholz pledging immediate solidarity after the flood. "This is more than misleading. One should feel neglected. We truly anticipated more than that." Additional federal aid is deemed necessary: "It cannot end here."

"We do not abandon anyone," asserted SPD faction leader Ulrich Commerçon. "This state government is capable of facilitating solidarity." The federal government waived the 6 million euros charge for the Technical Relief Agency's assistance: "That's already a substantial contribution." Further aid should be justified on a case-by-case basis. "It is the state government's responsibility." He regretted that federal governments had not invested adequately in critical sectors for years.

The Saarland is entitled to receive 200 million euros annually from the federal financial resources equalization

"The Saarland possesses both moral and legal grounds to receive the required aid from the federal government," argued AfD faction leader Josef Dörr. The government must ensure "that our Saarland does not lag behind." The AfD faction was the sole one to vote against the new debt.

Initially, it was uncertain whether the Saarland government would actually utilize the supplementary budget's additional credit option. According to the 2022 population census results, the Saarland's population now exceeds 1 million. This indicates that the state should receive an additional 200 million euros annually from the federal financial resources equalization. "Unfortunately, we still do not know when these funds will be available," said von Weizsäcker. Consequently, provisions must be made using the "special assets."

The flood-affected areas are still at risk of further damage, necessitating continued investment in flood protection measures. The lack of sufficient federal aid has been a topic of critical discussion, with calls for additional support to alleviate the financial burden.

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