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German finance minister plans €40b for councils | Malay Mail

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FRANKFURT AM MAIN, Dec 21 — German finance minister Olaf Scholz said today that Berlin could help lift a €40-billion (US$44 billion) debt burden off struggling local authorities, potentially enabling new outlays on schools and infrastructure. Of over 11,000 local authorities nationwide, there...

German Chancellor Angela Merkel and German Finance Minister and Vice-Chancellor Olaf Scholz shake hands after a press conference on December 16, 2019 at the Chancellery in Berlin. — AFP pic

Of over 11,000 local authorities nationwide, there are “around 2,500 towns and municipalities squeezed by so much debt that they’re gasping for breath,” Scholz told the Funke Newspaper Group. Officials like Scholz often retort that rather than a lack of funds, the real problem is planning and financial bottlenecks at local authorities, who are responsible for spending on items like schools and roads.

The populous former coal and steel heartland has suffered from deindustrialisation in recent decades.

 

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