Municipal authorities in North Rhine-Westphalia have expressed satisfaction with the federal government’s commitment to addressing accumulated municipal debt
Christian Schuchardt, managing director of the North Rhine-Westphalia Association of Cities, stated that the government’s plans to concretize federal participation in relieving this debt is a welcome development, fulfilling a pledge made in the coalition agreement He emphasized the urgent need for the federal government to assume responsibility for municipal liquidity loans beginning in early 2026, stating that combined funding from both federal and state levels will significantly enhance the effectiveness of debt relief measures
According to Schuchardt, this action will improve the financial flexibility of affected cities, allowing them to move beyond simply managing deficits However, he stressed that a lasting solution requires addressing the structural underfunding of municipalities within the state He called on the federal government to stabilize and ideally reduce, the annual increase in social expenditures, placing hope in the newly established Social State Commission to deliver concrete proposals Furthermore, he asserted the importance of the principle of Konnexität – that when responsibilities are transferred to municipalities, they must be fully funded accordingly – urging the state government to consistently uphold this principle