in Spite of high tax revenues, the indebtedness of many German rise of large cities. Particularly cities in North Rhine-Westphalia and Rhineland are affected-Palatinate, Germany.
trap Many German cities in spite of high tax revenues and economic activity deeper and deeper into debt. According to a study by the audit, Ernst&Young (E&Y) has recorded the majority of the 73 cities with more than 100,000 inhabitants in 2015 increase in Debt.
especially cities in North Rhine-Westphalia had higher liabilities, stated in the study. 19 of the 29 NRW-cities would have had to take on additional loans.
In the Rest of Germany had reduced, most of the cities in your debt. The bottom line is that the total debt of all the major cities fell by 0.2 per cent to 80.9 billion euros. In each big city residents in municipal debt in the amount of 4,099 m euros. in addition to the North Rhine-Westphalian cities reported according to the E&Y big cities in Rhineland-Palatinate and lower Saxony a further increase in Debt-to – 0.9, or 0.5 percent. The already significantly less indebted cities in Bavaria and Baden-Württemberg have reduced their liabilities. The most indebted city, according to E&Y Oberhausen, followed by Saarbrücken and Mühlheim on the Ruhr. The least indebted large cities are Braunschweig , Wolfsburg and Jena. The average Per capita debt of the East German cities was significantly lower than that of the large West German cities. While she was sunk in the East since 2012 to four per cent, had increased the Per capita debt of the Western cities in the same period by 0.2 percent. The positive economic and Revenue developments of the past years had gone by to the most heavily indebted major cities, apparently to a large extent, explained to E&Y. the conditions were currently favourable. The employment increases, the control gushers of revenue, the interest rates are extremely low. In the case of an economic downturn would worsen the Situation rapidly. “To be prepared, would have to go ahead with the restructuring of the municipal finances very much faster,” the authors write.
hej/Reuters
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