Düsseldorf (dpa / lnw) – The municipalities in North Rhine-Westphalia see their financial ability to act at risk. “Cities and municipalities are facing a serious financial crisis,” stressed Eckhard Ruthemeyer, President of the NRW Association of Cities and Municipalities, on Monday in Düsseldorf.
Several crisis effects would hit the municipalities unchecked. “Expenditure far exceeds revenue, forcing local authorities to take out more liquidity loans.” The main cost drivers are the skyrocketing prices for energy, construction and personnel, rising social spending and caring for the refugees.
At the same time, one is confronted with currently falling tax revenues and additional burdens. The NRW municipalities are hit hard by the financing of the federal relief packages: In the third quarter, the municipalities received 700 million euros less than in the previous quarter for their share of income tax.
“Without noticeable help, the NRW municipalities will slip into budget security in the medium term and will be forced to reduce benefits and increase taxes,” it said before the Prime Ministers’ Conference next Wednesday.
