NRW Advances Partial Debt Relief for Struggling Cities as Federal Support Remains Uncertain

The state of North Rhine-Westphalia commits to a $250 million annual plan to ease municipal debt burdens, urging the federal government to fulfill its share of the promised assistance.

• NRW's new legislation aims to cover up to 50% of municipal debts exceeding a defined threshold, with plans to allocate $250 million annually over 30 years.
• The total municipal debt in NRW stands at approximately $20.9 billion, primarily from liquidity loans taken to address short-term financial gaps.
• The federal government has yet to confirm its participation in sharing the financial burden, leaving the state's efforts as only a partial solution to the debt crisis.
• Local leaders and advocacy groups emphasize that federal involvement is critical to achieving a comprehensive resolution for struggling cities across Germany.
• Without additional financial support, experts warn that many municipalities could exhaust their reserves by 2028, risking further deterioration of public services and infrastructure.

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Westdeutsche Allgemeine Zeitung Westdeutsche Allgemeine Zeitung Stern