German Finance Minister Jörg Kukies (SPD) will present a proposal to take over the municipal old debts by the federal government and the states at the beginning of the new year.
“We’re working intensively on the proposal and plan to present it soon in the new year” Kukies told the “Rheinische Post” (Monday edition). The federal government wants to help municipalities with excessive liquidity credits, which are burdened, to make future investments again. “The idea is to change the Basic Law so that the federal government and the states can take over municipal old debts together. This is currently excluded” the SPD politician said.
“The basic concept would be a transfer of municipal old debts to the states and the federal government. Overall, it would not change our good debt ratio. The federal government and the states would have a higher, and the municipalities a lower, share” Kukies said. Cities in North Rhine-Westphalia and Saarland are particularly affected by excessive indebtedness.