As the federal election draws near, the North Rhine-Westphalia State Association of Cities is urging the federal government and opposition parties to reach an agreement on a municipal debt relief package.
The head of the State Association of Cities, Thomas Eiskirch, said in an interview, “The final round for debt relief has now begun with the government’s draft bill. Now, all parties must seize this last chance of the legislative period to bring the necessary constitutional amendment under the dome.” From the cities’ perspective, the proposed draft bill “absolutely meets our requirements.”
In Eiskirch’s view, a debt relief package in which the federal government is involved is the best solution for the North Rhine-Westphalia cities. A cross-party consensus is now within reach. If the necessary two-thirds majority for a constitutional amendment is achieved in the federal council, this would also be a success for the North Rhine-Westphalia state government, as cities in this federal state would particularly benefit, according to Eiskirch. North Rhine-Westphalia’s Minister-President, Hendrik Wüst, must now primarily advocate for the debt fund among CDU and CSU members.
The recently presented draft bill by the Federal Ministry of Finance provides for a one-time exception: This would enable the federal government to take on a maximum of half of the approximately 31 billion euros in liquidity credits of cities and municipalities in Germany, in a constitutionally compliant manner. North Rhine-Westphalia has already planned its part of the debt relief package – 7.5 billion euros over the next 30 years – in its state budget.