Economist Truger warns of municipal collapse and attacks
Federal Government / Deficits in Billions: Economist calls for higher
VAT share for cities and municipalities
Osnabrück (ots) – In view of a record deficit of 32 billion euros at the
Cities and municipalities last year, the economist Achim Truger
the current federal government is accused of the dramatic financial difficulties of the
Municipalities ignore them through their budget policy. “I’m afraid that
The federal government feels safe and ignores the austerity policy
causes problems elsewhere,” said Truger in an interview with the “Neue Osnabrücker
Newspaper” (noz). According to the economist, the municipalities are already on fire for the third time
Year in a row “the tree was ablaze”, which led to it being closed out of sheer necessity
Swimming pools, neglected infrastructure and staff cuts.
In order to counteract the impending collapse, the economy is pushing for one
financial redistribution in favor of the municipalities, which are particularly under-performing
Social spending for refugees and weak trade tax revenues are suffering.
“You could give the municipalities a larger share of the VAT and
distribute the money in such a way that poorer communities receive special support,” said
he told noz. The deep financial problem cannot be easily solved
savings, which is why real solidarity from the federal government is essential in the current situation
was required.
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OTS: New Osnabrücker Zeitung