Posted on 12/21/2019 7:25:45 PM PST by Olog-hai
Germany’s most in-the-red towns could soon get help from the government, Finance Minister Olaf Scholz said on Saturday.
In an interview with the Funke media group, Scholz said Berlin “has signaled its willingness” to help remove a €40 billion ($44 billion) debt from local authorities on a “one-off basis.”
Out of Germany’s 11,000 local authorities, Scholz said the plan concerns “around 2,500 cities and municipalities that are squeezed by so much debt that they can barely breathe.”
Removing the debt would likely set local authorities up to spend more on much-needed infrastructure repairs and renovations on schools, kindergartens and swimming pools.
Most of the overindebted municipalities are located in states like North Rhine-Westphalia, Hesse, Rhineland-Palatinate and Saarland, which have been hit hard by deindustrialization. …
(Excerpt) Read more at dw.com ...
“one-off basis.”
Yeah, onetime only. BS
Germany just can’t print euros
Pay NATO instead.
How many mosques will they build with the money?
20 % of German towns are in debt? Pore babies. Put all those mooooslim radicals to work earning their welfare.
p remove a €40 billion ($44 billion) debt from local authorities
Rewarded for spending into massive debt.
Why, they will never do that again. /s
What a great chance for 8500 other local authorities to sell air and keep the Govt out of it.../s
Mosques with kindergartens and swimming pools.
The local authorities in the U.S. would just funnel the money to their families and associates and the infrastructure would remain decrepit.
Germans aren’t having children so what difference does it make if they ‘save’ the towns? Their culture’s dead.
In general, and I won’t say it’s the same problem with all 11,000 communities and towns with the debt issue...but the nearby city to me (I live in Germany)...got into a loan crisis about three to four years ago.
What they had going (maybe for twenty years) was a money-manager for the city who had found this revolving credit vehicle for city with low interest rates (lower than even German banks could offer). It was via a Swiss bank. So when the city really needed something and the revenue pot was empty, they ‘charged’ it and waited for the money delivery from the federal folks to the state folks, and got the ‘cash’ to pay the loan. It was all simple and low-interest.
Then one day, the Swiss (who are not with the Euro) had an adjustment done on their currency. It was a swift moment and no real warning. It had been undervalued for years, and this was an effort to correct that mistake. Well...if you had loans of x-amount, the correction action suddenly made your debt a whole lot more in Swiss Currency. It was an action requiring you to pay more from your property taxation pot, and you had less money for real infrastructure or city projects.
But that’s likely just one of a dozen triggers on this debt issue (amounting to 40 billion owed by city and village governments). The migration crisis triggered additional debt issues, as well as screwed-up construction projects.
So, what happens to the debt in this scenario? Is it just "poof!" gone, or what?
Does it just "vanish into thin air?"
Or is somebody else simply encumbered with it.
Regards,
(Yes, I know the answer.)
Bailout is the tool of Globalists.
Where is my bailout?
This is what will happen here when the ‘public servants’ retirements go bust. They will be federalized so that all of us can pay the sleeze-bags.
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