Munich before the financial crisis: Record debt until 2028 threatens!

Munich before the financial crisis: Record debt until 2028 threatens!

The city council of Munich has approved the budget for the coming years, which brings in profound financial challenges. Despite increasing income of 9.3 billion euros, the city is faced with an expenditure volume of almost 9.1 billion euros, which could lead to worrying debt. By 2028, debt load could grow to almost 12 billion euros, while a surplus of 235 million euros will be expected in the coming year. This was reported by the tz .

The green-red town hall coalition describes the financial situation as "solid" and plans investments of five billion euros, especially in education and social projects. But the opposition parliamentary group leader Manuel Pretzl criticizes the procedure: "The city will be led to the brink of bankruptcy in just five years." Instead of relying on new debts, he demands more responsible budget management. Also the Süddeutsche reported on the tensions between the government coalition and the opposition as well as the concerns about the future ability of the city.

investments and austerity measures

Budget -responsible treasurer Christoph Frey emphasized that new loans of 2.25 billion euros are necessary to continue to enable investments. This debt admission is viewed critically, especially since the city was repeatedly faced with austerity measures and the cancellation of planned projects in the past. The city council decisions show that despite good income, the pressure on the household increases and some projects in the field of culture and environmental protection have to be put up. Whether Dieter Reiter emphasized the need to set the course for a sustainable financial policy, while critics consider the overload of the budget as irresponsible.